YPF and Entre Ríos Province Sign Three-Year Agreement to Supply Silica Sand and Cut Vaca Muerta Logistics Costs

Governor Rogelio Frigerio and YPF President and CEO Horacio Marín formalized the cooperation agreement at YPF headquarters in Buenos Aires on September 28, 2026. The framework establishes joint analysis mechanisms for projects spanning mining development, logistics infrastructure, energy systems and public service modernization. YPF currently uses Entre Ríos silica sand in its Vaca Muerta wells, with Marín describing the provincial resource as the best quality sand discovered in Argentina to date. The company’s endorsement validates Entre Ríos’ positioning in the hydraulic fracturing supply chain serving the Neuquén formation.

The agreement prioritizes expanding Entre Ríos silica sand production capacity and improving transport conditions to Vaca Muerta through infrastructure projects addressing road networks, railway systems and river navigation routes. The central objective targets logistics efficiency gains and cost reductions across the production chain. Entre Ríos leverages its strategic geographic position within national transport corridors, existing industrial network and production capacity to consolidate its role as a critical input supplier. Frigerio emphasized that the province possesses resources, companies, productive capacity and strategic location capable of contributing competitiveness to Vaca Muerta development through investment generation, employment creation and logistics cost reduction.

The joint agenda extends beyond sand supply to encompass analysis of new YPF commercial points and service stations along key Entre Ríos corridors. Electric mobility initiatives will expand electric vehicle charging infrastructure throughout the province. Telemetry system implementation for the provincial public vehicle fleet will generate data on usage patterns, routes and unit conditions to improve resource administration. The parties will explore options to repurpose or utilize YPF assets for storage projects linked to agroindustrial production, particularly vegetable oils. Municipal collaboration will evaluate fiscal incentives to attract private investment.

The framework establishes cooperation parameters without automatic resource allocation or immediate construction commitment. Each initiative advancing from the three-year agreement will require specific accords detailing financial commitments, operational responsibilities, conditions and execution schedules. The structure enables Entre Ríos participation in Vaca Muerta’s value chain while maintaining fiscal discipline through project-by-project evaluation of technical feasibility and financing availability.