Argentina's LNG Hub Project Takes Major Stride Forward

The respective national oil companies of Argentina and Malaysia, YPF and Petronas, have signed a preliminary deal to build a massive LNG liquefaction project in the Argentine port town of Bahia Blanca.
According to the local newspaper El Destape, the firms signed a deal on Thursday, taking their previous commitment to the project (the signing of a joint study and development agreement last September) one step further.
The $10 billion facility will be built in several stages and involves 5 million tons per year of floating LNG capacity in the first stage and an onshore plant with 25 mpta capacity in a second stage. The full project is expected to take 10 years, Bnamericas reported.
The plant will be fed through a new, 640-km pipeline set to be tendered by YPF in three successive stages of 22 million cubic meters per day capacity each.
Key to bringing the project to fruition is Argentina's liquefied natural gas promotion bill, which was presented in congress earlier in the week by YPF executives and has drawn criticism for being tailor-made for the needs of the LNG project.
Fostering LNG capacity in Argentina is key to unlocking the full potential of the Vaca Muerta shale formation.