Chevron partnered with Argentina's YPF and Pluspetrol to back a $3 billion natural gas liquids project in the Vaca Muerta shale formation. Transportadora de Gas del Sur leads the development and received commitments for 80% of the project's capacity.
The facility will process associated gas from oil wells into exportable propane and butane. This infrastructure prevents regional bottlenecks that could otherwise limit the area's growing production.
This agreement serves as the final requirement for Transportadora de Gas del Sur to green-light the project. Separately, Chevron applied for a $13.8 billion oil drilling program in Vaca Muerta under a new government incentive regime.