Argentinian energy company YPF has revived plans to develop the country’s offshore gas reserves and plans to put an existing floating LNG production unit in place by 2027.
Those who have been following efforts to monetise the Vaca Muerta reserves said YPF is planning to use Malaysian state energy giant Petronas’ 1.2-million-tonnes-per-annum PFLNG Satu (built 2016) unit.
The floater is currently deployed off Sabah state in east Malaysia.
A relocation to Argentina would be a long voyage from its current location but it would not be the first time the unit has been shifted.
PFLNG Satu made history as the world’s first FLNG unit when it started production in 2017. Two years later, Petronas — which operates two existing FLNG units and is building a third — scored another first when it was relocated to a new nearshore location in 200 metres of water to develop a marginal gasfield.
In 2022, YPF and Petronas signed up to work together on LNG in Argentina.
In a results presentation, YPF chairman and chief executive Horacio Marin said the plan is to sanction the development of a large-scale LNG project by mid-2025.
YPF detailed that it plans to use an existing FLNG unit from 2027 to ensure early production of between 1 and 2 mtpa of LNG but did not name the floater it plans to deploy.
The company said that from 2029 to 2030 it would introduce two new FLNG facilities, which would enable it to boost production by an additional 8 to 9 mtpa.
Onshore modules would be added post-2030, which would push up LNG production by a further 15 to 20 mpta.
The energy company, which is 51% state-owned, said its target is to export between 25 and 30 mtpa of LNG from 2032 onwards, which would secure around $15bn per annum of revenues.
“YPF aims to own about 25% to 30% of the total LNG capacity,” the company said.
“Making progress on the first Argentine LNG project” is detailed as the fourth pillar of YPF’s business strategy.
Argentina, which elected far-right Javier Milei as its new president in December, has long been trying to monetise its offshore gas reserves but has back-tracked on previous plans and put investment decisions on hold.
In 2020, YPF previously terminated a charter with Exmar on the Belgian shipowner’s 500,000-tonne-per-annum Tango FLNG (built 2017) unit. The floater has since been sold to Eni for its LNG production in the Republic of Congo.
In the results call, YPF vice president of strategy, business development and control Maximiliano Westen said: “The LNG project needs long-term visibility and a tax package so that it’s competitive at a global level.”
Westen said this visibility is needed or project financing would not be forthcoming.
