Argentina’s state-owned oil and gas company YPF and UK-based LNG giant Shell have signed an agreement to develop the first phase of the Argentina LNG export project. The parties committed to advance the development of the first phase of the Argentina LNG project until the decision to enter the FEED (Front-End Engineering and Design) stage is made. Argentina LNG is a project for the liquefaction of gas for export to world markets, it includes the production of gas in dedicated blocks in Vaca Muerta, its transportation through dedicated gas pipelines of 580 km in length to a processing and liquefaction terminal that will be built in Sierra Grande, Rio Negro, on the coast of the Atlantic Ocean. This first phase involves a liquefaction capacity of 10 Mt/year. The PDA agreement implies that Shell will join the project, marking the end of Petronas' participation as a partner on the project.
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.
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