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End of an era: YPF will begin exporting LNG in 2019



YPF announced on Wednesday an agreement with Belgian company Exmar that it will be based on a ship that will allow it to export Liquefied Natural Gas (LNG) from 2019 in the next 10 years, which will position Argentina in a group of several trade countries of that product .

This was announced today by YPF President Miguel Gutiérrez; executive director Daniel González and executive vice president of gas and energy, Marcos Brown, along with executives of the Esmars company, led by executive director Nicolas Savers, at a meeting held at the headquarters of the Argentinean company in Puerto Madero.

The project

It is a project for industrialization that will allow the company to export up to 5% of the current production, estimated between 40 and 45 million cubic meters per day, until it achieves progress in its mega-project for construction of a liquid landfill plant.

"With this project we can add value to the resources derived from Waka Moerta and take advantage of the seasonal compatibility with the markets in the northern hemisphere," Guttires said, noting that access to different markets includes Asia, Europe and regional markets.

It will be a test for a company that will allow YPF "learning for a major transformation project for the country that is a terminal for the export of LNG, behind this is the development of all fields in Waka Mouerta and its integral capacity," Gutierrez noted.

In the same sense, Gonzalez said that "thinking about a LNG terminal globally must be thought of less than 20 million cubic meters per day (in the first modular phase), which is the only thing that can allow the development of the gas this Dead to its full potential ".

"Argentina can double the production, but there is a need for new sources of demand, and this is the best way to do so by exporting natural gas in the form of liquefied gas," said the company's CEO.

Import

The monetization of the extensive natural gas reserves will generate revenue of more than $ 200 million a year, "which represents 10% of total fuel and energy exports and exceeds the export of rice, honey and skins," the company said at a press conference.

The ship will have an exclusive agreement with YPF to operate over the next 10 years to utilize natural gas in the Bahia Blanca area, in the same maritime zone where the ship for regasification was for weeks.

Among the possibilities open with its presence in the country, it was emphasized that in addition to the export, the LNG produced will be transported to the LNG terminal of Escobar and will be used to replace the import of the mentioned product, with a positive impact on the national accounts.

The ship, which upon arrival will be named Tango FLNG, has the capacity to weigh 2.5 million cubic meters per day and equivalent to 500,000 tonnes of LNG per year, estimated to be equivalent to 1 million yearly household consumption.

Brown, meanwhile, explained that the operation would consist of "placing about eight methane tankers annually through the spot market representing 40% of LNG sold worldwide, with a very important complementary relationship with the demand of 40 major importers ".

"With this we managed to put natural gas on the international market, which today has no markets due to the Argentine season," Brown said.

According to operational forecasts, "by mid-February, the ship will be able to start adaptation operations and startup operations to start production between May and the first days of winter in Argentina."

At the peak of the country's winter demand, the agreement stipulates that from September on the ship will produce full capacity for liquefaction.


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