Argentina to bring in second LNG liquefaction vessel in 2028

Argentina's Southern Energy floating liquefied natural gas project said on Friday it would charter a second liquefaction vessel with capacity of 3.5 million tonnes of liquefied natural gas per year from Golar LNG, to arrive in the country in 2028.

Argentina is seeking to become a global energy player by exploiting its giant Vaca Muerta shale formation, which holds the world's second-largest shale gas and fourth-largest shale oil reserves.

The ship, named MKII, joins another vessel chartered by Southern Energy, Hili Episeyo, that is expected to start up in 2027.

"Together, the two ships should be able to produce six million tonnes of LNG annually, equal to 27 million cubic metres of natural gas," Southern Energy said in a statement.

Southern Energy is owned by a consortium including Argentina's state energy producer YPF, Golar LNG and others.

"One of the world's largest floating LNG projects in Argentina has been confirmed," said Argentina's Economy Minister Luis Caputo on social media, adding that the two ships should be able to export some $2.5 billion worth of LNG annually for the next 20 years.

"This will involve the construction of a new dedicated gas pipeline to supply two liquefaction vessels on the coast of Rio Negro," Caputo said.

The second ship, currently under construction in China, is due to be operational towards the end of 2028.

(Reporting by Eliana Raszewski; Writing by Rafael Escalera Montoto; Editing by Lucinda Elliott and Nia Williams)