Shell has stepped away from a phase of Argentina LNG tied to a project development agreement with YPF, citing a “significant change in the project scope.”
YPF CEO Horacio Marin said the company is prioritizing a separate $20 billion, 12 million-ton-per-year LNG phase with Eni and ADNOC’s XRG and expects a final investment decision around mid-2026.
The chief executive added that he expects the 12 mtpa phase to move to FID “around the middle of next year,” saying the firm and partners Eni and XRG would hold “in the region of a third each” of equity.
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Marin said the Shell-linked phase has been resized down, describing it as having “halved to 6 mtpa from 12 mtpa.”
YPF’s stated plan is to seek another partner to replace Shell in that downsized phase, while explicitly elevating the Eni-XRG 12 mtpa phase as the priority track.
On timeline, Marin said exports from the 12 mtpa phase “will likely start in 2030 or 2031,” which he framed as roughly four years from the potential mid-2026 FID. The sequencing puts commercial start-up in the early 2030s if the FID target holds and execution stays aligned with the four-year ramp Marin cited.
Marin also shared YPF will use JP Morgan to seek project financing in early 2026 for the 12 mtpa phase.
Pricing assumptions were anchored to current LNG prices into Asia, per Marin. He said Argentine LNG exports to Asia are more competitive than US exports to Asia, but less competitive than US exports to Europe.
Beyond the 12 mtpa priority phase and the resized Shell-linked 6 mtpa piece, Marin said his overall ambition is to bring YPF-led parts of Argentina LNG to 18 mtpa.
Marin also flagged potential shareholder returns timing, saying YPF could introduce dividends in 2028 or 2029 depending on oil and gas prices. That places dividends ahead of the likely 2030–2031 export start for the 12 mtpa phase.
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