Golar LNG to deploy processing platform off Argentina under 20-year contract

Golar FLNG
A Golar LNG floating processing vessel (right)Golar FLNG

Golar LNG has entered into definitive agreements with Pan American Energy (PAE) for a 20-year deployment of a floating liquefied natural gas (FLNG) vessel in Argentina. The FLNG project will monetise Argentine gas, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world's second-largest shale gas resources.

The project is scheduled to start LNG exports within 2027, establishing Argentina as an LNG exporter. This strategic venture is built on a commercial foundation featuring a gas sales agreement from PAE 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 utilise Golar’s FLNG Hilli, with a nameplate capacity of 2.45 million tons per annum (MTPA), providing an equivalent net tariff of US$2.6/mmBtu (based on 90 per cent capacity utilisation) with an additional commodity-linked pricing element. Golar has flexibility to consider a swap alternative for another suitable FLNG unit.

As part of the agreements, Golar will hold a 10 per cent stake in Southern Energy, a dedicated joint venture with PAE, responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina. This initiative is envisaged to be the first phase of a potential multi-vessel project. The agreements are subject to sign-off of customary conditions.

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