International engineering giants are positioning themselves strategically as Shell and YPF prepare to launch a highly anticipated front-end engineering and design (FEED) tender for Argentina’s first floating liquefied natural gas (FLNG) facility, marking a significant milestone in the country’s ambitious energy expansion plans.
The landmark $50 billion Argentina LNG megaproject, a joint venture between global energy supermajor Shell and Argentine state-owned company YPF, is gaining substantial momentum as it enters this crucial development phase. Industry sources confirm the partners are finalizing preparations to issue the FEED tender by August 2025, initiating a comprehensive 10-month engineering workscope scheduled for completion by mid-2026.
This meticulous FEED process will establish the technical foundation necessary for the subsequent engineering, procurement, and construction (EPC) contract, which will ultimately bring the floating LNG facility from concept to reality. The FLNG unit represents a cornerstone element in Argentina’s strategy to monetize its vast Vaca Muerta shale gas resources and position itself as a significant player in the global LNG export market.
According to industry insiders, at least five major international contractors have already expressed strong interest in securing this prestigious contract. South Korea’s Samsung Heavy Industries, a global leader in offshore facilities and FLNG construction, is preparing a competitive individual bid. Similarly, China’s Wison New Energies, which has been expanding its footprint in the FLNG sector, is expected to submit an independent proposal.
Meanwhile, strategic alliances are forming to enhance competitive positioning, with France’s Technip Energies—renowned for its expertise in LNG technologies—establishing a formidable partnership with Japan’s JGC Corporation. This collaboration combines Technip’s engineering prowess with JGC’s project execution capabilities, creating a powerful contender for the contract.
The intense competition underscores the project’s strategic importance in the global energy landscape. For the winning contractor, the Argentina FLNG project represents not just a lucrative contract but also an opportunity to showcase technological capabilities in one of the energy sector’s most challenging and innovative segments.
YPF’s Chief Executive Horacio Marin has emphasized the transformative potential of this project for Argentina’s economy, highlighting how it will leverage the country’s abundant natural gas reserves while creating significant employment opportunities and technical expertise development.
Energy analysts anticipate this project will substantially enhance Argentina’s export capabilities while providing a stable, long-term outlet for Vaca Muerta’s prolific gas production. As global demand for cleaner-burning natural gas continues to grow, particularly in Asia and Europe, Argentina’s strategic investment in FLNG technology positions the country to capture valuable market share in the evolving global energy mix.
The outcome of this competitive tender process will be closely watched by industry stakeholders worldwide as it represents a significant step forward in Argentina’s ambition to become a major LNG exporter by the end of this decade.
SOURCE: Oilspot Suriname