Argentina’s state run oil company, YPF and Malaysia’s Petronas will invest $30 billion (€27 billion) in an LNG export project in the Patagonian province of Río Negro.
With the plant in Sierra Grande, Río Negro, the association would become the fifth global LNG producer, and would be one of the most important private initiatives in the history of the country. YPF’s board of directors chose Sierra Grande after a thorough technical and economic evaluation, which found that Rio Negro offered advantages over the initial Bahia Blanca location in Argentina.
An advantage to this location is that the shorter pipelines present are needed to transport the natural gas from Vaca Muerta, which shows lower costs and greater efficiency. In addition, the sea depth in the Sierra Grande area is larger, reducing the need for dredging to achieve an adequate draft.
The Sierra Grande LNG plant is anticipated to create numerous direct and indirect jobs with the reactivation of the Punta Colorada port, which could attract other industries to settle in the area too.
