Shell Withdraws from Argentina LNG Project with YPF

Shell has withdrawn from YPF’s Argentina LNG export project after completing pre-FEED work, but says it still sees the Vaca Muerta basin as a promising LNG growth market.

(P&GJ) — Shell has opted out of participating in the next phase of Argentina’s proposed LNG export project, developed in partnership with state-run YPF, the companies confirmed this week.

The project, designed to export up to 10 million tonnes per annum of liquefied natural gas from the Vaca Muerta shale, has been in early-stage development since a project agreement was signed in December 2024.

“Shell has decided not to move forward with the initial phase of the Argentina LNG project. Shell participated in pre-FEED only,” a company spokesperson said.

Despite stepping away from the project, Shell said it continues to view Argentina as a “potentially attractive growth market for LNG export” and remains open to future collaborations with YPF.

The decision marks a pause in Shell’s involvement in Argentina’s first large-scale floating LNG initiative, which aims to unlock the country’s vast unconventional gas reserves for global export.