The future of the Liquefied Natural Gas (LNG) project in Río Negro faces uncertainties following the possible withdrawal of Petronas, the Malaysian oil giant, from its partnership with YPF. This situation has led the Argentine state oil company to seek new strategic allies to continue with the ambitious plan that requires an investment of close to 30 billion dollars.
Given this situation, YPF President Horacio Marín has repeatedly mentioned that talks have been held with various companies in the global energy sector, known as the “supermajors,” to fill the vacant position that Petronas could leave behind. These large companies with a global presence have shown a growing interest in the LNG business, motivated in part by the energy transition toward cleaner sources.
The supermajors are the major oil and gas companies that control a large part of the global hydrocarbon market. They include ExxonMobil, Shell, Chevron and TotalEnergies, companies with vast experience in managing complex, multi-billion dollar projects. These corporations play a key role in the LNG industry, as they have the financial resources and technology to develop large-scale infrastructures that include liquefaction plants, specialized transportation and regasification terminals.
For these reasons, YPF is seeking to secure the participation of one of these companies in the LNG project in Argentina, which would allow them to strengthen the gas value chain in the country, from its extraction in Vaca Muerta to its export.
The interest of the supermajors in the LNG market is not new. Globally, demand for this fuel has increased significantly, especially in markets such as Asia and Europe, which are seeking to diversify their energy sources and reduce their dependence on coal and oil. In this context, ExxonMobil, Shell, Chevron and TotalEnergies have positioned themselves as leaders in the production and distribution of LNG, with huge projects spanning multiple continents.
ExxonMobil, based in Texas, USA, is one of the largest energy companies in the world. Its participation in the development of the Golden Pass LNG project, in collaboration with QatarEnergy, is an example of its ability to finance and operate large-scale initiatives. This project, located in Texas, will expand the capacity to export LNG from the United States, consolidating ExxonMobil’s position in the international market. In addition, its involvement in the Rovuma gas field in Mozambique reinforces its commitment to LNG as a key fuel in the global energy strategy.
Shell is another of the supermajors that has developed an extensive portfolio of LNG projects. Based in the Netherlands and the United Kingdom, this multinational is actively involved in the expansion of the North Field gas field in Qatar, one of the largest in the world. This project will allow Shell to significantly increase its export capacity by 2027, strengthening its leadership in the sector. In addition, the company has innovated with the creation of the Prelude FLNG floating plant, located in Australia, which marks a milestone in offshore gas liquefaction technology.
Petronas’ investment in the Rio Negro LNG megaproject is in danger
California-based Chevron also has a strong presence in the LNG market, primarily through its projects in Australia. Its Gorgon LNG and Wheatstone LNG plants are key to meeting growing gas demand in Asia, a region that is increasingly dependent on LNG imports for its energy security. With these infrastructures, Chevron not only strengthens its competitive position, but also contributes to the diversification of energy supply in key markets.
TotalEnergies, formerly known as Total, is another of the companies that could partner with YPF on the Rio Negro LNG project. This French company has diversified its portfolio towards renewable energies, but remains a major player in the LNG sector. Its participation in the Mozambique LNG project, although it has faced political and security challenges, is a sign of the company’s commitment to the development of this resource. In addition, like Shell, TotalEnergies has a significant presence in Qatar, where it is participating in the expansion of the North Field, allowing it to consolidate itself as a key player in the global market.
The LNG project in Argentina is one of the government’s most ambitious projects for the coming years. With an investment of 30 billion dollars, it involves the construction of a liquefaction plant in the province of Río Negro and the works necessary to transport the gas extracted from Vaca Muerta to the plant in Sierra Grande. This megaproject would not only boost the country’s export capacity, but would also generate thousands of jobs and contribute to reducing the energy deficit that Argentina faces.
Despite Petronas’ possible withdrawal, YPF The state-owned company appears to be well positioned to move forward with the project. Marín reportedly said that the state-owned company could afford the initial investment of $200 million, which is required for the tender for detailed engineering, scheduled for November. This will be a key step in completing the construction of the plant, although the participation of a supermajor could speed up and ensure the success of the project in the long term.
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