Chevron, YPF and Pluspetrol are reportedly backing a $3 billion natural gas liquids (NGL) project utilizing associated gas from the Vaca Muerta shale play in Neuquén Province, Argentina.
The project is reportedly being led by Transportadora de Gas del Sur (TGS), with Chevron, YPF and Pluspetrol having signed agreements to secure approximately 80% of the volumes. The project reportedly involves building gas processing and separation facilities to convert associated gas from the Vaca Muerta shale play into export-grade NGLs such as butane and propane. The agreement was announced in June 2026 and has reportedly moved into the final investment decision (FID) stage.
Total investment is reported at $3 billion. Separately, Chevron is reportedly also applying for a $13.8 billion crude drilling program under Argentina’s RIGI (large investment incentive regime).
The project is viewed as an investment to build export-oriented NGL supply chain capacity in response to rising gas production from the Vaca Muerta shale play, it is reported.
Continued investment in NGL production facilities utilizing associated gas from shale plays is seen as a case illustrating the linked expansion of upstream resource development and downstream petrochemical feedstock supply chains.
The timing of the final investment decision (FID) and whether actual construction begins are worth watching.