Introduction to the Project and Key Players
In pursuit of partners for their Liquefied Natural Gas (LNG) project, Argentine energy company YPF and Italian firm ENI have welcomed a third partner: XRG, the international investment arm of ADNOC (Abu Dhabi National Oil Company).
Regulatory Steps and Financial Targets
The trio of companies must navigate a series of regulatory steps. Once these are successfully completed, they will seek financing amounting to approximately $29 billion.
This collaboration has the potential to generate a staggering $200 billion over two decades, with annual revenues of $10 billion split equally between LNG and oil.
Agreement Milestones
- YPF and ENI signed a technical agreement one month ago.
- A “framework agreement” with ADNOC is pending, expected to be finalized within the next 30 days.
- Final regulatory approval from RIGI (a Rio Negro-specific law governing LNG operations and concession sign-offs) is required before pursuing financing.
Project Scope and Future Expansion Plans
The project aims to process 12 million tonnes of LNG annually (MTPA, as per industry jargon). YPF intends to add another six MTPA with a “supermajor” partner, yet to be disclosed.
Horacio Verbitsky, CEO of YPF, stated: “The inclusion of XRG in the Argentina LNG project strengthens a crucial initiative for the country’s future energy landscape.”
ADNOC, with daily production of approximately 4 million barrels, is five times more productive than YPF.
Key Questions and Answers
- Who are the key players in this LNG project? The main participants are Argentine energy company YPF, Italian firm ENI, and XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC).
- What are the financial targets of this project? The project aims to generate approximately $200 billion over 20 years, with annual revenues of $10 billion split equally between LNG and oil.
- What regulatory steps must the companies navigate? The companies need to follow a series of regulatory procedures, including final approval from RIGI and securing financing worth around $29 billion.
- What are YPF’s future expansion plans for the project? YPF aims to add another six million tonnes of LNG annually (MTPA) with a yet-to-be-disclosed “supermajor” partner.
- How does ADNOC’s productivity compare to YPF’s? ADNOC produces around 4 million barrels per day, which is five times more than YPF’s output.
