Chevron Corp. and two other major Argentine shale producers will sign contracts this week to supply a natural gas liquids project, a move that all but assures the $3 billion plan goes ahead, according to people familiar with the matter. The supply deal covers both condensate and NGL fractions, ensuring steady feed for the downstream unit.

By securing feedstock from local drillers, the venture reduces logistical uncertainty that has hampered Argentine projects. Investors see the commitment as validation of recent regulatory reforms and the expanding Vaca Muerta output. The $3 billion capex, funded jointly by Chevron and partners, mitigates currency risk by pricing contracts in U.S. dollars, reassuring foreign investors.

The contracts give Chevron a foothold in South America’s most promising shale play, likely boosting upstream earnings as production ramps. Rival majors may follow, intensifying competition for Argentine assets. With feed agreements sealed, the project moves from planning to construction, setting a timeline for first gas liquids shipments within years. The deal underscores belief that Argentina can support major energy projects.