Chevron leads US$3-billion Argentina shale liquids project with YPF
Chevron Corp is set to finalize agreements this week for a natural gas liquids (NGL) project in Argentina's Vaca Muerta shale basin. The US energy giant will partner with state-run YPF SA and private firm Pluspetrol SA to supply the venture led by TGS SA. The US$3-billion project aims to process natural gas into exportable liquids like butane and propane, addressing infrastructure bottlenecks in the growing shale region.
Chevron confirmed it is close to finalizing the deals, with the three drillers expected to fill about 80% of the project's capacity. Signing the contracts is a key step toward TGS's final investment decision, according to sources familiar with the matter. TGS will fund part of the investment, with the rest to be financed by banks nearing agreement on terms.
The NGL project is one of several initiatives poised to transform Argentina's shale industry into a major global energy player. Chevron's involvement extends beyond this venture, as it recently applied for President Javier Milei's investment program to secure tax breaks for a US$13.8-billion oil drilling project. This marks some of the most significant US investment in Argentina since Milei's presidency began.