GLNG: Petronas and Argentina’s YPF to invest $30bn to construct LNG plant in Patagonia

Argentina’s state-owned energy firm YPF and Malaysia’s Petronas have agreed to jointly contribute more than $30bn to construct an LNG facility in Sierra Grande in the country’s southern Patagonia region, the two companies announced.

The announcement ends widespread speculation over the choice of the site location for the facility. Initially, interest had appeared to be growing in support of selecting the port city of Bahia Blanca in the south-western part of Buenos Aires Province.

However, in a turn of events, the joint partners announced that Sierra Grande in the province of Rio Negro in northern Patagonia would be its choice for the LNG facility, which is expected to come at a price tag of between $30bn and $50bn.

Following a technical and economic study, it was determined that the Sierra Grande site provided a number of advantages compared to Bahia Blanca.