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YPF, Petronas to seek partners for $10B Vaca Muerta LNG terminal – report (NYSE:YPF)

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Argentina’s YPF (NYSE:YPF) and Malaysia’s Petronas plan to look for partners to help build a $10B liquefaction terminal and related infrastructure, a key for raising production from the Vaca Muerta shale play, S&P Global Platts reported Tuesday.

The two state-backed companies will seek partners for building and financing the plant in modules, helping to stretch out the capital requirements, according to the report.

A key for moving forward with the project reportedly is the approval of a bill designed to promote investment in LNG export infrastructure; if the bill is approved, YPF (YPF) and Petronas would sign a contract for the project and begin to arrange partners, including for supplying gas for export, S&P Global Platts said.

The companies signed a memorandum of understanding for the project in September, saying they would target 25M metric tons/year of LNG exports in 10 years.

Vaca Muerta is the world’s second largest shale gas reserve and fourth largest shale oil reserve; YPF (YPF) and Petronas have worked together in the past to develop shale oil in the block.

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