YPF’s LNG Strategy: Clarifying the Land-Based Misconception

The recent reports suggesting Argentina’s state-owned energy giant YPF has ruled out building a land-based liquefied natural gas (LNG) plant are misleading. According to YPF’s publicly outlined plans, the company is advancing a phased LNG project that includes both floating and onshore infrastructure. This strategy positions Argentina to capitalize on its vast unconventional gas reserves—particularly in the Vaca Muerta shale play—while navigating regulatory, financial, and logistical challenges.

The Phased LNG Play: Fast Tracking with Floating Units

YPF’s LNG project, developed in partnership with Malaysia’s Petronas and Italy’s Eni, is structured in three stages:
1. Phase One (2024–2026): Two floating LNG (FLNG) units near the coast, with a combined capacity of 12 million tons per year (mtpa).
2. Phase Two (2027–2030): A 10 mtpa onshore modular liquefaction plant.
3. Phase Three (2030+): Expansion to 30 mtpa, adding two more trains.

The emphasis on FLNG in the first phase is a strategic move to accelerate development. Floating units can be deployed faster than onshore plants, reducing the risk of delays from infrastructure or regulatory bottlenecks.