Anglo-Dutch multinational company coincidence He confirmed what had been an open secret: that It is no longer involved in the project with YPF so that Argentina has production and exports of liquefied natural gas With Vaca Muerta Fuel. This announcement comes one year after the prior agreement signed by the two companies in the Netherlands.
“Shell has decided not to proceed with the initial phase of an LNG project in Argentina. Initially, only Shell was involved in this phase Engineering design before the front end (Nutrition or engineering design). We continue to view Argentina as an attractive growth market for LNG exports. Therefore, Shell continues to explore expansion options with YPF.
Confirmation came after the wire Reuters It caused a stir in the sector, following talks with Shell executives in London, England.
President and CEO of YPF, Horacio MarinExecutive Vice President of Shell LNG, Cedric Cremerssigned on December 19, 2024 in The Hague, Netherlands, A Project development agreement (PDA) is making foreign sales of 6 million metric tons of liquefied gas, equivalent to about $2.5 billion annually.
but YPF needed to boost LNG exports to 2029 or 2030, which is certainly sooner than Shell could reach its projects in Argentina.Taking into account that it is one of the world giants in liquefied gas trade with other more advanced projects.
LNG market analysts see this In the next five years, demand for fuel will grow faster than supply, which is why global prices will rise.. This is the window that Argentine oil companies are seeking to capitalize on, with YPF and Pan American Energy (PAE) at the helm.
That’s why this year YPF accelerated its negotiations with Italy’s ENI and was able to add Abu Dhabi National Oil Company (ADNOC, through its company XRG) to export 12 million metric tons per year – about US$5,000 million per year. This project will have its final investment decision in the first half of 2026, ideally in March or April.
At the time of signing, the agreement was between YPF and Shell This was part of the second phase of the Qatari “Argentina LNG” project.The Anglo-Dutch multinational would have replaced Petronas, the Malaysian state oil company, which withdrew first from the project and then from Argentina, in the role of international partner with financial backing and potential buyer of the gas.
YPF is in talks with other giant oil companies in the world, such as Saudi Arabian Aramco and the American company Exxon Mobil. Its liquefied gas project The need for investments of no less than 17 billion dollars, Of this, about US$12.5 billion will be sought in the debt market. If achieved, he will receive the largest international credit in Argentine history to be applied to a production, infrastructure and export project.
Meanwhile, the first phase of Argentine LNG is steady and underway: the Southern Energy Association (SESA) led by PAE and jointly with YPF, Pampa Energía, Harbor Energy and Golar LNG closed this week. The first contract for the sale of liquefied gas With the German state-owned SEFE Fund for 2 million metric tons per year, equivalent to US$875 million per year.