00:00Some really big news for YPF and XRG. Talk us through what was announced today.
00:07What we have with E&I is a big project in Argentina for LNG.
00:13This is a size of 12 million tons per year and XRG is showing us for the project.
00:23Today is not binding, but we have a month that we are going to work together because it's for that because with E&I we are working in a year and we are showing everything that we've done with them because E&I we have a technical FID.
00:41What does it mean to that? That we have all the projects done, the economics, everything.
00:45So we are going to share all the information on XRG and after in a month from now we will sign at the same level the three of them after there are some, no issues, there are some
01:02technical approval that we need from government that is not very difficult because it's extremely good for Argentina.
01:12Yeah.
01:13And next year, that is our goal, the next year is start looking for the project final for the project and see if at the middle of next year we have the final FID and we start executing the project.
01:29Okay. How big of a deal will this be for Argentina's LNG aspirations?
01:35It's very, very important. This, this project is very robust because it's not only for gas, it's gas, but the, the, the production comes only, comes also oil with that.
01:50Is what is called in technical wet gas. That means that you produce gas and oil. And the export for Argentina, this project could be in the order of $200 billion in 20 years.
02:09It's very important. It's $10 billion of export per year. So it's very important for Argentina. It's very important for YPS, also for E&I. And I imagine also for XRG to, to find their, their portfolio around the world.
02:27And where does this deal fit into the broader growth strategy around gas, around oil, where does this deal fit into the broader strategy, the bigger strategy around oil and gas?
02:41Yes. When I arrive to YPS, I have a clear path. The objective of, of YPS is that Argentina could, could export $30 billion per year of energy.
02:58Yeah.
02:59Yeah.
03:00Oil and gas. And the figure that we have now is, you know, the $50 billion. That is all the industry. And for YPS, we have a program or, or a, that we call YPS 4x4, that is multiplied by four in four years, the value of the company. I'm sure that we, we will get.
03:20So, inside there, what is the path, there are four pillars. One is the development of oil. The second is the active portfolio management. We saw, we saw a lot of fields that are not profitable for YPS. And we focus where it's more profitable for the shareholder.
03:40The third one, the third one, the third pillar is the efficiency and productivity. And the last one is the LNG. Oh, this is part of our program. Our program from the first beginning, when there was no LNG in Argentina, was to develop LNG. And we are proud. And in particular, I'm very proud because it was no project of LNG before President Milley took the power.
04:10Yeah.
04:10And now we have one of six million tons that is a reality because we will, we have finally, if I did, this project, I will, I, I was very positive that we'll get the project financed and it will be a reality.
04:26How is the engineering progressing on floating LNG?
04:30No, a lot. And E&I is an expert. And so, we are an expert in the afternoon and in Argentina. We are not expert in LNG because the first time that we are going to do it in Argentina. And E&I is an expert.
04:45So, we are going to do it in the world. And we are going to do it in the world. And we are going to float LNG. And we are going to build with E&I the biggest vessel in the world that is 6 million tons each. It's huge. It's a vessel that is 400 meter length for almost 100 meter width. So, it's huge. It's a factory.
05:08You mentioned President Millay. He ran on a campaign of transforming the Argentinian economy. Has he been a game changer for your industry?
05:19Yes, because I always say without RIGI, what is a new law, there is no LNG.
05:26And the RIGI was very important. It's transforming not only Argentina and the openness for all the investment, the foreign investment, and it's a reality, and also transforming the way of thinking of the people.
05:43The young people are changing their mind. There is more environment for business. And all of that helped me a lot for our goal.
05:57Because our goal was real. At the beginning, people think that it was a little crazy because it was big, big enough.
06:05But always, if you don't make big goals, you don't reach. Always. You have to put big goals, and it doesn't matter if you don't reach that goal. If you reach near that, you are better than before.
06:19The midterms were a crucial point for President Millay. And he massively outperformed versus what polls were expecting going into it.
06:32Do you think that this is going to give him additional impetus to continue with reforms that will help with the investments that you need?
06:39Totally, totally. Really, the performance was outstanding. And with the help of the United States in the economy, plus the excellent problem of the economy that they have in Argentina, that they need some help because you are changing from a big crisis, economy crisis.
06:57Economy crisis you cannot change in a year. You have to grow, and if we start growing, definitely.
07:05That is very good for Argentina, very good for the environment, very good for everyone.
07:10What are the reforms? As a leading voice in a very important industry in Argentina, what are the main reforms that you would like to see done?
07:20No, for us, the big reform that we needed at the moment was the rigging for that.
07:27One thing that happened in Argentina that today is free market. So the prices of the gasoline there is free market. We decide with the price of oil, with the exchange rate, with all that.
07:48And so the big reform for our industry is almost done. The new ones for the regime, for taxes and for labor also will help a lot because we need to be more modern.
08:06And so that it will help more our programs.
08:10Yeah. Let's come back to talking about oil and gas and how you see the demand versus supply outlook developing over the next few years, because analysts in the industry are expecting a significant buildup of LNG supply over the coming years.
08:27You have U.S. bringing more projects online. You have Qatar almost doubling their capacity by 2030.
08:33Yes.
08:33Are you concerned about whether the demand will keep up with the extra supply that's also going to come out of Argentina?
08:40No. The world needs LNG. Europe needs LNG. Asia needs LNG. There is no doubt. And ANI needs much more energy than before.
08:54Yeah. And so the demand is very clear. After 2030, there is, if you pull all the projects, there is a gap. And we are, I would say, more competitive than the United States because that is wet gas.
09:11So our revenue is double. It's gas plus oil. And so if you see a black-even price with the demand, we are very good in that range.
09:26Yeah.
09:26So we are positive. ANI is positive and XRG are positive because if not, it didn't sign.
09:34Yeah. What's your short-term view on oil markets here? Short-term view on oil markets?
09:41I think you have to be, I would say, wise, no, to see exactly in the end. But we are seeing that next year it will be in the bond between 60 and 70. That is what we are thinking and what we are putting in our budget.
10:04Yeah. Okay. Just a round of the questions on specifically oil. You're spearheading the Vaca Muerta Sur, which is a huge pipeline project for exporting cruel.
10:15Is it still on track to be operational by the end of next year? I think that's the timeline you gave?
10:21Yes.
10:21Okay. And how much is it going to be exporting?
10:23Yes. And two days ago, it was the last welding, bending.
10:30Yeah.
10:31So we were, what was the construction, the pipe, we gained five months. The bottleneck is the port.
10:42Yeah.
10:42I don't have to say in English, boy, I think it's the boy.
10:46Yeah.
10:48But we are on track and we are going to start at the end of next year 180,000 buyers a day for all the industry. Because that is very important to point out. Even that it's leading by YPF and YPF is building the pipeline.
11:07This is the first investment in Argentina that was done for all the industry.
11:12Yeah.
11:12And so we are very proud that we can join as a collaborative project all the industry. And so that will be both for YPF and for the other companies.
11:26That's why our goal is not only YPF is all the industry. Why? Because we need everybody and we are the majority of size of ACAMUARTA. So we share investment. They share with us and everybody has better, lower investment and more profitability.
Comments