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Senior aide to Argentina's Milei says Shell considering financial investment in LNG task, according to report

The cabinet chief to Argentine President Javier Milei cited oil major Shell as a. possible investor in a future liquefied gas (LNG). job to be run by the nation's state oil firm YPF. , according to paper La Nacion.

Cabinet Chief Guillermo Francos stated at an occasion that the. Anglo-Dutch giant has actually shown strong interest in a potential. investment in LNG together with YPF, according to La Nacion.

Shell did not right away respond to an ask for remark.

One LNG project led by YPF has already seen significant. advances.

The $55 billion preliminary stage of the LNG tie-up between. YPF and Malaysian state oil company Petronas is expected to. reach a last investment decision by the second half of next. year, the CEO of the Argentine national manufacturer said in. September.

At the time, President Horacio Marin stated the. capacity of the very first stage would depend on 10 million heaps per. year with first output to come in between 2029 and 2030 totally. from floating centers. A 2nd stage including onshore. facilities would include 15-20 million tons annually by 2032,. according to Marin.

Argentina seeks to pump more gas from its big Vaca. Muerta shale formation in western Neuquen province, which would. allow it to cut its dependence on pricey imports.

Requested for comment on Shell's interest, a YPF source. verified Francos' assessment.

The interest is genuine, the source informed Reuters without. defining whether Shell is thinking about investing with YPF and. Petronas on the LNG task set for Rio Negro province,. southeast of Neuquen, or a separate project.

Previously this month, YPF said it continues to look for arrangements. with oil companies to assist develop the LNG plant in Rio Negro that. would enable future LNG exports to purchasers in Europe and Asia.

YPF published a 7% increase in its natural gas production. throughout the third quarter, attributed to advance in Vaca Muerta.

(source: Reuters)