Argentina's YPF Closes In on Key LNG Deals Amid Market Upheaval
Argentina's state-run YPF SA is nearing completion of several liquefied natural gas (LNG) sales contracts for its proposed US$24-billion export plant. The company aims to secure these deals before making a final investment decision in November, according to CEO Horacio Marìn.
The LNG project, Argentina LNG, includes Italy's Eni SpA and Abu Dhabi's XRG, each holding roughly equal equity stakes with YPF. This offshore facility on the Atlantic coast would produce 12 million tons of LNG per year, making it one of the largest floating facilities in the world.
Marìn stated that two to three contracts are close to being signed, ranging from 0.5 to 1.5 million tons per year. The global LNG market is currently experiencing upheaval due to disruptions in the Persian Gulf and Strait of Hormuz, prompting buyers to diversify away from Middle Eastern suppliers.