(The Energy Circle, London – 12 May 2025) Argentina’s ambition to reposition itself as a net energy exporter is gaining fresh momentum, with YPF and Pluspetrol announcing a 20% increase in gas processing capacity at La Calera, one of the country’s most productive unconventional assets in the prolific Vaca Muerta formation.
With this upgrade, the plant now processes 14.5 million cubic metres of natural gas per day, supporting national supply during the critical winter months and marking a significant step forward in Argentina’s energy resilience.
The expansion is backed by a US$1.5 billion investment over the past two years, with an additional US$700 million in capital expenditure planned for 2025. The development includes a robust network of 90 productive wells and infrastructure upgrades aimed at optimising throughput and reliability.
The move is aligned with the country’s broader goal of stabilising its internal energy balance and scaling up exports. After years of energy deficits, Argentina reported a positive energy trade balance in 2024, enabled in part by Vaca Muerta’s escalating output and efficiency gains in gas processing infrastructure.
Vaca Muerta remains central to Argentina’s energy future. As the world’s second-largest reserve of shale gas and fourth in unconventional oil, the formation has already attracted more than US$50 billion in investments since exploration began in 2013.
In April 2025, the basin set a new operational benchmark with 2,214 fracturing stages—a technical measure of unconventional drilling activity—reflecting the sustained growth in development momentum.
This surge in activity is reshaping Argentina’s position in global hydrocarbons. With upstream production increasing and downstream projects in LNG and midstream export infrastructure underway, companies like YPF and Pluspetrol are taking leading roles in defining the country’s long-term export capabilities.
While Argentina continues its push for renewable integration, natural gas remains a critical transition fuel for the country and the broader Southern Cone. Enhanced processing capabilities at La Calera will not only stabilise domestic energy supply but also enable higher volumes for cross-border trade and future LNG exports, particularly to energy-hungry markets in Asia and Europe.
The scale and pace of development underscore a broader industry trend: unconventional plays, once marginal, are now delivering material contributions to national energy security.
