This is a project for the liquefaction of gas for export to world markets.

YPF President and CEO Horacio Marin and Shell Executive Vice President for LNG Cederic Cremers signed an agreement on Thursday for the development of the Argentina LNG project.

Argentina LNG is a project for the liquefaction of gas for export to world markets. It includes the production of gas in dedicated blocks in Vaca Muerta, its transportation through dedicated gas pipelines of 580 kilometers in length to a processing and liquefaction terminal that will be built in Sierra Grande, Rio Negro, on the coast of the Atlantic Ocean.

The PDA (Project Development Agreement) implies that Shell will join the project. The parties committed to advance the development of the first phase of the Argentina LNG project until the decision to enter the FEED (Front-End Engineering and Design) stage is made. This first phase involves a liquefaction capacity of 10 million tonnes per year (MTPA).

"We are proud that Shell, a world leader in LNG production, is joining the project. As a pioneer in the LNG market, Shell's knowledge and experience will be instrumental in helping to position Argentina as a reliable and competitive global energy supplier," said the YPF president.

With Shell's entry into the development of the first phase of Argentina LNG, Petronas' participation as a partner of YPF ends. Both will continue working on the development of the La Amarga Chica area in Vaca Muerta.

YPF has acknowledged the valuable contribution of Petronas over the past two years, sharing its technical and commercial experience in the LNG market with YPF teams. The joint work has contributed to the development of the Argetina LNG Project to its current stage and will allow for new steps to be taken.