Argentina LNG project to be located in Sierra Grande
Published by Jessica Casey,
Editor
LNG Industry,
After an extensive technical-economic evaluation process carried out by the professional teams of YPF and PETRONAS, it has been concluded that the most advantageous location is the town of Sierra Grande in the Province of Río Negro.
The YPF board has unanimously approved this decision, after analysing all the information presented by the technical teams and the consulting firm on the alternatives for the location of this initiative.
For its part, and in order to give greater transparency to the process, YPF decided to hire, on its own account, the international consulting firm Arthur D. Little – a qualified and independent third party – who concluded that it is more advantageous for the project to make the investment in Río Negro. In their report they established that “Río Negro shows better economic aspects for the project, even if Buenos Aires were to match the tax benefits.”
This project would be one of the most important private initiatives in the history of the country. It is a project worth more than US$30 billion and would allow Argentina to become the fifth largest LNG producer in the world.
For this reason, the decision on the location of the project required a very thorough and exhaustive technical work, taking into account all the technical, economic, environmental, geographic, fiscal, and regulatory variables.
The Sierra Grande area appears to be the best option due to the shorter length of the gas pipelines needed to transport natural gas from Vaca Muerta; the existence of a greater maritime depth that reduces the need to dredge to achieve the draft for the operation of the planned vessels; the wide availability of land and the low interference with other social and economic activities; the possibility of having a dedicated port operation and the synergy with the development of local infrastructure with the Vaca Muerta Sur Oil Pipeline project; among others. Likewise, the province of Río Negro offered the regulatory and fiscal conditions necessary for the development of the project.
It is worth highlighting the good predisposition of all parties for the interest shown in this project and the professionalism with which they have worked on their proposals.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02082024/argentina-lng-project-to-be-located-in-sierra-grande/
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