Argentinian state-owned energy corporation YPF (Yacimientos Petrolíferos Fiscales) is determined to pursue its US$5bn LNG export terminal project, despite Argentina's current political and financial situation. YPF, which has led the development of the 19,820 bcm Vaca Muerta shale gas field, is discussing with potential international and domestic partners to design an LNG liquefaction terminal.
The company hasn’t decided yet if the LNG terminal would be onshore or offshore, and where it would be located. It could benefit from its location in the southern hemisphere, where seasonal gas demand is reduced while demand from Asia and Europe spikes.
Currently, Vaca Muerta’s output goes through the 0.5 Mt/year Tango floating LNG liquefaction terminal commissioned in 2019, located about 650 km southwest of Buenos Aires. The development of a larger terminal would help unlock production in Vaca Muerta, where drillers face poor demand for most of the year.
Argentina bets on the Vaca Muerta field to improve domestic energy supply and begin natural gas exports. The country's energy trade balance went from a US$6.1bn surplus in 2006 to a US$6.9bn deficit in 2013; the deficit was cut to US$2.3bn in 2018 and is expected to close to balance in 2019.
Interested in LNG Databases?
World LNG Database offers a complete set of data on LNG markets. The service provides detailed information on existing and planned liquefaction and regasification plants. It also includes LNG shipping around the world, LNG contracts, time series on regasification and liquefaction capacities, LNG flows and LNG prices for all players in the market.