en.Wedoany.com Reported - Chevron Corporation, along with two other Argentine shale producers YPF SA and Pluspetrol SA, will sign contracts to supply feedstock for a natural gas liquids project in Argentina, a move that essentially ensures the $3 billion plan can move forward.

The U.S. oil giant, targeting increased production in the Vaca Muerta shale basin, will collaborate with state-owned energy company YPF SA and private energy firm Pluspetrol SA to sign contracts with TGS SA, the natural gas company leading the project. This cooperation is seen as key to avoiding infrastructure bottlenecks in the booming shale region.

According to sources familiar with the matter, the three drillers will fill approximately 80% of the project's capacity, with signing the contracts being a complementary step to TGS's approval of the project—namely, the final investment decision.

The project will convert natural gas, much of which comes from associated gas from oil wells, into liquid products such as butane and propane for export. TGS will self-fund a portion of the $3 billion investment, with the remainder financed by banks.

YPF and Pluspetrol both declined to comment. TGS and Chevron did not immediately respond to requests for comment.

This natural gas liquids project is one of several processing and pipeline export initiatives set to transform Argentina's shale industry into a global energy supplier in the coming years.

Chevron's presence in Argentina extends beyond this. The company recently applied to join President Javier Milei's flagship investment program, which includes tax incentives, to undertake a $13.8 billion oil drilling project, marking some of the most significant U.S. investments in Argentina since Milei took office.

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