• Natural Gas News

    Argentina pushes to boost Vaca Muerta production


Argentine energy company YPF estimates natural gas production could increase by as much as 70% with new investments.

by: Daniel Graeber

Posted in:

Natural Gas & LNG News, Americas, Liquefied Natural Gas (LNG), Corporate, Exploration & Production, Shale Gas , News By Country, Argentina

Argentina pushes to boost Vaca Muerta production

A $1.5bn investment in the Vaca Muerta shale basin in Argentina could boost natural gas production by as much as 70%, Argentine energy company YPF said March 19.

YPF said the investments would target operations in Neuquen province, near the western border with Chile, and boost production from the Vaca Muerta shale by 56% for oil and 70% for unconventional natural gas.

YPF President Pablo Gonzalez said the investment is a net benefit not only for the nation’s energy sector but the heavily-indebted economy as well.

Spanning an estimated 7.5mn acres in total, the Vaca Muerta shale basin is among the largest in the world. Research from the US Energy Information Administration finds the basin holds 308 trillion ft3 of natural gas and 16bn barrels of oil and condensate.

The geological characteristics are similar to the Eagle Ford shale in the US, which is forecast to be the fifth-largest gas producer in the US this month.

Argentina envisions export potential from an LNG terminal that will put Vaca Muerta reserves on the international market. The terminal will boast an initial liquefaction capacity of 5mn mt/yr, rising to 10mn mt/yr under a potential second stage.

Along with other energy companies struggling during the pandemic, YPF saw fourth quarter revenues decline 32% year-on-year.