Equinor and YPF sign agreement on windfarm in Argentina

8 August 2019 (Last Updated August 8th, 2019 10:53)

Norway-based energy company Equinor has signed an agreement with YPF Luz to develop the Cañadón León wind farm, which is located in Santa Cruz, Argentina.

Equinor and YPF sign agreement on windfarm in Argentina
Equinor joins YPF Luz for the development of the Cañadón León wind farm in Santa Cruz in Argentina. Credit: Equinor ASA.

Norway-based energy company Equinor has signed an agreement with YPF Luz to develop the Cañadón León windfarm, which is located in Santa Cruz, Argentina.

An Equinor subsidiary will acquire a stake in Luz del León, a company responsible for the development of the Cañadón León windfarm that is currently under construction. Equinor will make an equity investment of $30m to acquire 50% stake in Luz del León.

YPF Luz CEO Martin Mandarano said: “We are very satisfied with this agreement with Equinor as a strategic partner for the development of the Cañadón León wind farm.

“In this way, we add to our projects another very important worldwide energy leader, thus reflecting the confidence of such players and global investors in YPF Luz.”

Upon completion of the subscription and capital integration, YPF Luz and Equinor will jointly manage Luz del León company, while YPF Luz will oversee the operations of the Cañadón León windfarm project.

Completion of the agreement is subject to certain conditions, including approval of antitrust authorities and obtaining project financing.

Equinor New Energy Solutions executive vice-president Pål Eitrheim said: “We are pleased to deepen and strengthen our relationship with Argentina’s leading energy company YPF, now also within wind power.

“We are looking forward to contributing to the development of the Cañadón León wind farm project and work together with YPF Luz.”

With an estimated investment of nearly $190m, the windfarm is expected to generate approximately 120MW of clean energy.

Energy generated by the wind farm will be supplied to CAMMESA under the RENOVAR 2 Program for 20 years under a private power purchase agreement (PPA), and also to YPF for 15 years.