Shell Joins Forces With YPF on Argentina's $50B LNG Leap

Shell plc SHEL has teamed up with Argentina’s state-owned oil and gas company, YPF Sociedad Anónima YPF, for a $50 billion transformative deal to develop the first phase of the Argentina LNG export project. Shell's proficiency in LNG (liquefied natural gas) aligns efficiently with the project’s objective to produce 10 million tons of natural gas annually. This project is considered a big one for Argentina because the country looks forward to cashing in on the vast reserves of the highly lucrative Vaca Muerta shale formation.An Insight Into SHEL’s Project Development AgreementThe Vaca Muerta Formation has been estimated to hold huge oil and gas reserves. It has the second-largest shale gas reserve and the fourth-largest oil reserve worldwide.The project is for the liquefaction of gas, which will be exported to the markets worldwide. Under the project, both parties will produce gas in the dedicated blocks in Vaca Muerta and transport it through a 580 km long pipeline to a processing and liquefaction terminal in Sierra Grande, Rio Negro, on the coast of the Atlantic Ocean. The parties will only develop the first phase of the LNG project until they decide to enter the FEED (Front-End Engineering and Design) stage. During the initial phases, the companies will rely on LNG vessels, predicting permanent onshore facilities, positioning Argentina as a global energy powerhouse.Is the Project Supported by Its Timing?Amid the Russian LNG supply shock, Argentina could not have found a better time to cash in on its huge natural gas reserves due to rising demand from the European and Asian markets. By collaborating with YPF, SHEL, currently carrying a Zacks Rank #3 (Hold),not only supports Argentina's ambition for energy independence but also positions itself as a key player in meeting global LNG demand.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The exit of Malaysia-based, Petronas from this venture marks a crucial moment for the Shell-YPF partnership to lead the charge. This partnership will not only turn Argentina into a global energy leader but will also drive its economic growth.Some other LNG companies that investors can also monitor are Cheniere Energy, Inc. LNG and Chevron Corporation CVX.Cheniere, the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, enjoys a distinct competitive advantage over other natural gas companies.Chevron, one of the biggest companies dealing in LNG, is also working on major LNG projects like the Gorgon and the Wheatstone in Australia, which will help it secure a stronghold in the growing Asian market.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report YPF Sociedad Anonima (YPF): Free Stock Analysis Report Cheniere Energy, Inc. (LNG): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks