YPF, Petronas to advance LNG production in Argentina

Both companies have signed a Joint Study and Development Agreement to boost production and commercialization of the alternative fuel in the country.

YPF and Petronas have signed a Joint Study and Development Agreement (JSDA) for an integrated project to develop Liquefied Natural Gas (LNG) production and commercialization in Argentina. This partnership will support upstream operations such as unconventional gas production, pipeline and infrastructure development, as well as international marketing and logistics.

Both companies aim to leverage on YPF’s leadership in the development of Vaca Muerta as the experience and knowledge of the Petronas Group in the operation of LNG liquefaction facilities. As Argentina sits above the second largest unconventional gas reserve in the world, the project will meet the world’s demand for gas by replacing more coal-intensive energy sources and contributing to reduce greenhouse gas emissions.

"I am very proud of the strategic alliance we have had with Petronas since 2014 and today we take another step forward to continue building the energy solutions that the world and Argentina need," said Pablo Iuliano, CEO of YPF.

The firms have been partners in the development of the La Amarga Chica block in Vaca Muerta since 2014, today producing more than 40,000 barrels of oil and 1 million cubic metres of gas per day. In addition to this JSDA, YPF and PETRONAS signed a Memorandum of Understanding (MoU) to continue collaboration in Argentina in other areas such as oil production, petrochemicals and clean energy solutions.

"We look forward to strengthening our successful alliance with Petronas and joining forces once again to develop this strategic project," added Pablo Gonzalez, Chairman of the YPF Directorate.