Ypf's Partner Company Projects a Global Increase in Lng Demand

YPF's president, Horacio Marín, highlighted the findings of a report prepared by the oil company Shell, YPF's partner in the development of the LNG project in Vaca Muerta.

According to the report, which has a global scope, the demand for liquefied natural gas will continue to rise until 2040, driven by economic growth in Asia, the need to reduce emissions in heavy industries, and the increase in energy consumption in the technology sector.

Although the document doesn't specifically mention Vaca Muerta's potential, Marín emphasized the relevance of the Argentina LNG project within this context. "With the Argentina LNG project, we are working strategically to be part of this growth and targeting key markets," he expressed through his LinkedIn account, where Shell shared the report.

He also stated: "Our goal is to position our country as a main player in the export of liquefied natural gas, contributing to the global energy supply. We are convinced that working together with Shell and other companies will be key to seizing these opportunities. The future is promising!"

Shell assumed the role previously held by Petronas in the development of the "Argentina LNG" project, a corporate modification that was finalized at the end of 2024. The new agreement provides for the partial financing of the first stage of the project with an investment of USD 200 million for the initial engineering.

In this phase, the agreement between YPF and Shell includes a liquefaction capacity of 10 million tons per year (MTPA). For this, the installation in Río Negro of two ships is planned, which will be supplied with gas extracted from the Neuquén Basin.

The state oil company aims for the final investment decision to be made in the first months of the year and to include agreements with the main actors in the local energy sector.

Additionally, YPF has already signed a Memorandum of Understanding with the companies Oil and Natural Gas Corporation (OIL), Gas Authority of India Limited (GAIL), and Oil and Natural Gas Corporation Videsh Limited (OVL) from India, with the intention of exploring the export of LNG for up to 10 million tons per year.

In 2024, the global LNG trade reached 407 million tons, with a slight increase of 3 million tons compared to the previous year, marking the smallest expansion of supply in the last decade. Meanwhile, China and India strengthened their imports, while Europe reduced its purchases by 19% due to the advancement of renewable energies and weak industrial demand.

Although the report doesn't explicitly mention Argentina, the growth of the Asian market and the increasing reliance on the United States as a supplier open an opportunity for the country as a potential exporter from Vaca Muerta.

Commercially, most of the LNG contracts signed in 2024 came from the Middle East, while the U.S. reduced its exports after a record period between 2021 and 2023. At the same time, China and India expanded their regasification and distribution capacity, consolidating themselves as the main drivers of future demand.

With limited supply and growing competition between Europe and Asia to secure supply, LNG will remain a strategic resource for global energy security.