Report: Senior aide of Argentina's Milei claims Shell is eyeing LNG investment
According to the newspaper La Nacion, the cabinet chief of Argentine president Javier Milei cited Shell as a possible investor in a future liquefied gas (LNG), project that will be managed by YPF, Argentina's state-owned oil company.
La Nacion reported that Guillermo Francos, the Cabinet Chief, said during an event the major energy company had shown "strong interest" for a possible LNG investment in the nation.
Cynthia Babski, Shell's spokesperson in an email, said: "We are constantly exploring opportunities to enhance our portfolio." The company refused to provide any further details on its agreements and activities.
The $55 billion LNG project, led by YPF, has seen considerable progress.
YPF's CEO said in January that the initial phase of LNG development was originally planned to be a joint venture between YPF, Malaysian Petronas and the Argentine National Producer. The final investment decision is expected by the second quarter of next year.
The partnership between Petronas & YPF, according to YPF Chief Executive Officer Horacio Martin, has weakened due to disagreements about the project.
The first phase will have a capacity of 9 million tonnes per annum, with the first production coming between 2029 and 3030. According to YPF, a second phase involving facilities onshore would increase the total project capacity to 30 million tonnes per year by 2032.
Argentina wants to increase its domestic gas supply, and export it eventually. It is looking to the Vaca Muerta shale in western Neuquen Province to help achieve this.
A YPF source confirmed Francos’ assessment when asked for comment about Shell's interests.
The source said that Shell would invest in LNG in Argentina, but did not specify how.
YPF announced earlier this month that it is still seeking agreements with oil companies for the construction of the LNG plant at Rio Negro.
YPF reported a 7% rise in its natural-gas production in the third quarter. This was attributed to progress made in Vaca Muerta. Reporting by Aida Peaez-Fernandez, Walter Bianchi and Lincoln Feast; Editing by David Alire Garcia and Diane Craft
(source: Reuters)
