Argentina’s state-owned energy company YPF has reportedly signed a licensing contract for Axens’ Prime-D™ diesel hydrotreater (DHT) technology. The unit is being built using modular prefabrication, a method said to shorten the construction schedule.
The unit will be installed within YPF’s Industrial Complex in Argentina and will apply hydrotreating technology to produce ultra-low sulfur diesel (ULSD). Axens’ Prime-D™ technology is being used, and the modular prefabrication approach is reported to minimize on-site work, cutting the construction schedule by approximately six months.
The unit’s processing capacity is 5,000 cubic meters per day, and the licensing contract was reportedly announced in early September 2026. The contract value has not been disclosed.
As South American refiners increase investment in low-sulfur diesel production capacity in response to tightening environmental regulations, this contract is seen as an attempt to shorten payback periods through the adoption of modular equipment.
If modular prefabricated refinery upgrade units become more widespread, they could reduce both construction time and cost compared to traditional on-site builds, potentially influencing similar equipment orders by refiners in other regions. Expanded low-sulfur diesel production capacity is also seen as strengthening the region’s ability to comply with environmental regulations.
Points to watch include the actual delivery and installation schedule, the timing of commercial startup, and whether the modular approach’s schedule-shortening benefits are realized in practice.