Tor Olav Trøim-backed floating liquefied natural gas specialist Golar LNG has entered into definitive agreements with Pan American Energy for a 20-year deployment of an FLNG vessel in Argentina.
The FLNG project will monetize Argentine gas, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas resource. The project is expected to start LNG exports within 2027.
This venture features a gas sales agreement from Pan American for the supply of gas and an FLNG charter agreement with Golar which includes a base tariff and commodity exposure to LNG sales prices.
The project aims to utilize Golar’s FLNG Hilli, with a capacity of 2.45m tonnes per annum, providing an equivalent net tariff of $2.6 per mBtu based on 90% capacity utilization with an additional commodity-linked pricing element. Golar has the flexibility to swap the Hilli for another suitable FLNG unit.
The Hilli is currently working for Perenco in Cameroon under the name Hilli Episeyo. It was built in 1975 and converted to an FLNG in 2017. It will end its operations in Cameroon in the second quarter of 2026.
As part of the agreements, Golar will hold a 10% stake in Southern Energy SA, a dedicated joint venture with Pan American Energy, responsible for the purchase of domestic natural gas, operations, sale, and marketing of LNG volumes from Argentina.
According to the company, this initiative is supposed to be the first phase of a potential multi-vessel project with other large natural gas producers in Argentina potentially joining.
“The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value for Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential,” said Karl Fredrik Staubo, Golar LNG CEO.
Energy News Beat