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Argentina's YPF indications agreement with Shell to establish Argentina LNG task

Argentina's staterun oil business YPF and oil major Shell signed an agreement to develop the country's flagship melted natural gas (LNG) project, the companies stated on Thursday.

The multi-stage $50 billion Argentina LNG project aims to export the gas to significant international markets.

The agreement, which was signed in the Netherlands, brings the Dutch oil giant on for the very first stage of the task, which aims to produce 10 million metric lots of LNG per year.

We are proud that Shell, a world leader in LNG production, is joining the project, YPF President Horacio Marin said in a. statement.

As a leader in the LNG market, Shell's understanding and. experience will contribute in assisting to position Argentina. as a reputable and competitive international energy supplier.

The statement said that the arrangement suggests Malaysian state. oil business Petronas' participation in the task had ended. It. included that Petronas and YPF would continue establishing the La . Amarga Chica location in Vaca Muerta, the second biggest. unconventional gas reserve in the world and the fourth largest. oil reserve.

Shell said in a different declaration that the LNG task is. aligned with Shell's plans to continue growing its LNG. organization.

Argentina LNG will likewise draw out gas from Vaca Muerta and. transport it through dedicated gas pipelines to the seaside. province of Rio Negro. The very first phase of the project will utilize. LNG vessels while future phases imagine the construction of. onshore LNG centers.

(source: Reuters)