YPF's new option for LNG export from Bahía Blanca

Adrian Luciani / [email protected]

In the midst of a race against the clock and away from the political hazards that can lead to a change of government, the leaders of the YPF are advancing with the idea of ​​squeezing the maximum product at Vaca Muerta and placing the # 1 Argentina in the small group of exporters of liquefied natural gas (LNG).

At the initial idea of ​​building an onshore liquefaction plant in Bahía Blanca or Chile, now adds the possibility of renting or acquiring at least one large floating unit, one a much higher capacity than what already works at Ingeniero White.

This alternative has been strengthened since it would require a significantly lower investment than that of a fixed onshore structure.

Despite the impact of the OSP, YPF leaders remain optimistic about Argentina's chances of becoming a member of the expanding small club of LNG exporting countries.

"We can not put the car in front of the horse by being distracted by the news," said Marcos Browne, executive vice president of gas and energy at YPF.

In fact, the oil company hired a US consultant several months ago to carry out all the studies needed to build a plant with a capacity of 5 million tons per year and one year. possible extension to 10 million.

If you want to fully enter the club of LNG exporters, our country will face fierce competition to guarantee the buyers and this offer will increase as other suppliers such as the United States and the United States. Australia is making progress in this area.

The main advantage of a YPF terminal will be its location in the southern hemisphere, ie it will be located where seasonal use decreases as the cold increases in Asia and Europe.
The first steps taken with the installation of the barge "Tango" on the local dock of Compañía Mega, in Cangrejales, continue to advance and at the end of the month of October, a ship will be dispatched to the first time, from Bahia.

It is estimated that a methane will leave loaded with LNG every 40 days until next May, when the winter starts and domestic gas demand increases.

However, this barge moored for experimental purposes can produce 500,000 metric tons of LNG per year, which is very small if it is placed in a world trade of about 300 million metric tons.

That's why, at YPF, they are always looking for a way to finalize the construction of a larger terminal allowing them to compete with major Asian markets.

"We still do not know if the LNG facility would be terrestrial or offshore and where it would be built. Options include anchoring several floating liquefaction units such as Tango, such as the Golar LNG Ltd. project. in Cameroon, "said Browne.

What is it?

This new alternative of targeting floating LNG production units, namely Floating Liquefied Natural Gas (LNG), seems to draw attention to what is being done in Africa, where it has been touted as a potentially lucrative avoid land installations with all the badociated planning and security issues.

The first FLNG project in Africa (Cameroon Go FLNG from Golar) was launched for the first time last year. Eni's Coral South FLNG is under construction in South Korea and Singapore and is expected to begin production in 2022, BP's Turtle Project finally got the go-ahead at the end of last year. and he will also be online in 2022.

This is a nascent activity and for the time being, conventional LNG plants and gas-to-energy production, such as Nigeria and Ghana, will continue to lead the way in monetizing African gas reserves.

Experts say that, if at the moment the participation of LNG produced by means of floating facilities is not significant, it arouses great interest, because the initial capital investment is smaller and the construction is faster, allowing investors to anticipate returns. . This is precisely what YPF needs.

With regard to the disadvantages, such a project obviously eliminates, unlike a land plant, the possibility of hiring local labor and entails higher operating costs.

A project to consider

According to statements by YPF's Executive Vice President, Cameroon's route to Africa is closely monitored.

There, the FNLG "Hilli Episeyo" is moored on the Kribi coast. This involves the conversion of a LNG carrier into an LNG production unit, to which the optimization of the Sanaga 1 offshore platform and the modification of Bipaga land treatment facilities.

"Hilli Episeyo" was originally a conventional 125,000 cubic meter (m3) LNG carrier built in 1975 and later modified by the Keppel shipyard in Singapore.
It now has four liquefaction trains, each with a production capacity of 500,000 to 700,000 tonnes of LNG per year, with a storage capacity of 125,000 m3.

The methanes are loaded using three transfer arms with a flow rate of 10,000 m3 / hour.

"Hilli Episeyo", the first LNG ship converted to a liquefaction vessel, produced its first LNG in the Sanaga field in March 2018 and sent its first shipment in May of the same year.

Bay, Quequén or Patagones?

Although other similar initiatives are about to come into operation, the Cameroonian model is the one YPF is based on and its realization could well take place in Bahía and Rosales.

In fact, there are no other ports in the country capable of collecting the benefits of our estuary, namely deep, safe and calm waters for the exploitation of this type of vessels, in addition to the availability of gas.

"Although Bahía Blanca is in charge of the project we are developing, the sites of Quequén and Carmen de Patagones are also badyzed, each with its advantages and disadvantages, which should be badyzed in detail," explained Browne.

The project will require an investment of between $ 4,000 and $ 5,000,000 in the liquefaction plant alone, in an area of ​​at least 300 hectares on which modular growth of facilities will be deployed and to which it will be added. infrastructure

This is in principle a new 600-kilometer pipeline from Vaca Muerta, costing US $ 1 billion, and an investment for additional unconventional gas production in the amount of 2,500 million US dollars, which allows a daily supply of 25 million dollars. cubic meters.

In summary, the entire project requires an investment of between US $ 8,000 and US $ 10,000,000, which will require the participation of other major players already present at Vaca Muerta, as well as other upcoming projects, which will require competitive costs compared to other ongoing projects. .

The YPF initiative should be ready in its technical details in 18 months. Then a consortium must be formed to move it forward.

At the same time, the government has decided to postpone the tender calendar for the construction of a gas pipeline linking Vaca Muerta north of Buenos Aires and south of Santa Fe, via Salliqueló.

The pipeline, which will serve to ease the requirement to subject gas pipelines that pbad through Bahia (allowing more gas to be exported), would receive bids last Wednesday, but this date has been postponed until Tuesday, November 12. According to the Ministry of Energy.