Vaca Muerta, nestled in southern Argentina, holds immense potential as a hub for gas and oil production, positioning the country as a major energy exporter. YPF and Petronas lead a $30 billion project to build a liquefaction plant, aiming to convert gas for overseas shipment and potentially generate $20 billion in exports annually by 2031.
Under President Milei’s administration, the plan seeks to address Argentina’s energy trade deficit and boost the economy. The Néstor Kirchner Gas Pipeline and compressor stations will enhance gas capacity to meet domestic demand. Energy consultant Paulo Farina emphasizes the global significance of this investment.
Despite competition with major players like Qatar and Russia, challenges lie ahead. Political debates over the plant’s location in Bahía Blanca or Punta Colorada and adherence to fiscal incentives remain contentious. Farina stresses the need to secure investments to ensure project success.
Turning Vaca Muerta into an LNG export hub is not just about gas; it’s a strategic move to stabilize Argentina’s economy and establish a strong foothold in the global energy market.