Local media report that Argentina's YPF has ruled out building a land-based LNG facility

YPF, Argentina's state-run energy company, has ruled out the construction of an onshore liquefaction facility for natural gas. Instead, it will rely on floating vessels to carry out this process.

Horacio Marina, CEO of Rio Negro LNG, said in an interview that there will be no onshore plants and the three phases of its plan to export LNG will be done by ship.

Marin explained that the timeframes are shorter than for a land-based facility, and all projects are turnkey so you will know exactly how much they cost.

YPF leads the development of Argentina's Vaca Muerta Formation, an area about the size of Belgium that holds the second largest shale-oil reserves in the world and the fourth largest shale-gas reserves.

According to the Southern Energy Project of YPF, other oil companies plan by 2027, Argentina's 11.5 million cubic meter per day liquefaction vessel will be launched. Another vessel is planned for the following year.

Shell has also signed an agreement with the company under which it will be involved in the production, the liquefaction of LNG and the sale.

YPF and Eni signed a Memorandum of Understanding to develop upstream LNG installations, including the transport of 6 million metric tonnes per year to two floating liquefaction plants. (Reporting and editing by Chris Reese; Eliana Raszewski)

(source: Reuters)