The Malaysian energy group Petronas and its Argentinian counterpart YPF have chosen the Argentinian province of Río Negro to develop a joint LNG project with a US$30bn estimated investment. The Argentina LNG is a project led by YPF and Petronas to liquefy gas produced in Vaca Muerta, its transportation to the processing terminal and its industrialisation for export to world markets, with a final expected production capacity of 30 Mt/year (5 Mt/year in a first phase). The Sierra Grande (Rio Negro province) area was selected over the originally proposed Bahia Blanca (Buenos Aires province) due to its advantageous location.
Argentina is estimated to hold South America’s 3rd largest gas reserves, with gas reserves of about 400 bcm (end of 2023). The Vaca Muerta formation has estimated gas reserves at around 8,700 bcm and oil reserves at 16.2 Gbl. It is estimated to be the second largest unconventional gas reserve and the fourth largest oil reserve of its kind in the world, with only 7% of its potential developed. Argentina is currently developing several pipelines to transport oil and gas from Vaca Muerta to urban centers of the country.
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