Chevron, YPF and Pluspetrol advance $3 billion Vaca Muerta gas-to-liquids project

Chevron Corp, Argentina's state energy firm YPF, private energy company Pluspetrol and gas developer TGS have signed contracts this week that cover more than 80% of the capacity of a $3 billion gas‑to‑liquids (NGL) processing project in the Vaca Muerta shale basin. The agreements, approved by TGS’s board, secure the final investment decision for the project, which will convert associated natural gas into export‑grade liquids such as butane and propane.

The development includes a roughly 100‑km gas‑segregation pipeline, a new processing plant at Trayatén, a poly‑pipeline to Bahía Blanca, fractionation and storage facilities at the port, and upgrades to the maritime terminal for export. TGS will fund part of the investment while banks are finalising financing for the remainder. The project is expected to generate about US$1.2 billion in annual export revenue and create roughly 4,000 direct jobs and 15,000 indirect jobs over its four‑year construction phase. CEO Oscar Sardi described the investment as strategically important for Argentina’s energy development.