Río Negro governor places first LNG cargo in 2028 as YPF advances Mendoza drilling and Argentina LNG timeline

Weretilneck’s 2028 timeline corresponds with Argentina LNG’s second floating liquefaction unit, the Esperanza, which YPF CEO Horacio Marín previously indicated would arrive in Río Negro by late 2028 with 3.6 million tonnes per year capacity. The first FLNG unit forms part of the initial 12 million tonne per year phase valued at $51 billion, with YPF now discussing a third vessel that would add 6 million tonnes annually and require an additional $25 billion investment. Marín disclosed plans to split the Rincón del Mangrullo block into separate RIGI applications, projecting $60 billion in additional upstream investment and 2,000 new wells across areas YPF will present as distinct packages.

The Argentina LNG consortium held a public hearing in Plaza Huincul to present the environmental impact study for the gas treatment plant at Meseta Buena Esperanza in Neuquén. The facility will process gas for the 527-kilometer, 48-inch diameter pipeline connecting Vaca Muerta production to the Río Negro coast. Water usage emerged as a primary concern during the hearing, with project representatives stating the plant will consume 4,800 cubic meters daily, calculated at under one percent of the Neuquén River’s average flow. Local unions and the mayor of Plaza Huincul endorsed the project while requesting prioritized hiring from the comarca and infrastructure support for regional suppliers.

The consortium launched the tender for pipeline tubes in late August, with economic offers expected between mid and late October and adjudication scheduled for November or early December. The compulsa values at approximately $2 billion and represents the first domestic procurement of 48-inch diameter pipe at the required specifications. Tenaris will be the sole local manufacturer competing against India’s Welspun, France’s Vallourec, Japan’s JFE Steel, US Steel and Chinese and South Korean suppliers. The tender includes a price-hold clause allowing the consortium time to close project financing after bid submission. Civil works were already awarded on July 8 to a consortium of Pumpco, Bonatti and Contreras Hermanos for approximately $1.2 billion, with the winning offer 15 percent below estimates.

In Mendoza, Cornejo confirmed three YPF wells scheduled for September and October as the province separately awarded the Atamisqui concession to Petróleos Sudamericanos and El Manzano to Venoil, committing $45.98 million over the first decade with 58 well interventions planned across both blocks. The Atamisqui program schedules 26 interventions on existing wells and one development well in 2032 with $2.7 million budgeted. Both concessions border existing holdings of the respective operators, with Atamisqui adjacent to Petróleos Sudamericanos’ Northern Cluster and El Manzano linking to Malargüe concessions YPF is transferring to Venoil.