Golar says all clear for second 20-year FLNG charter in Argentina

A charter deal to complete a floating liquefied natural gas (FLNG)-based export project in Argentina has reached its final approval, according to FLNG specialist Golar LNG.

Argentina’s Southern Energy LNG export project, which includes energy companies Pan American Energy, Pampa Energia and Harbour Energy, refiner YPF and FLNG owner Golar LNG, has closed on the 20-year charter of the MKII FLNG after taking an FID on this, the latter half of the two-FLNG export project, in August 2025.

Closure of the deal completes an expected US$8Bn in earnings backlogged through the 2040s, according to Golar LNG chief executive Karl Fredrik Staubo.

"Following today’s confirmation of the 20-year charter for the MKII FLNG in Argentina, each of Golar’s three existing FLNGs now holds 20 years of earnings visibility, representing a combined EBITDA backlog of US$17Bn before attractive commodity exposure. We look forward to starting operations in Argentina and to continue the strong partnership with SESA and its shareholders," he said.

Mr Staubo said that with its assets in long-term contracts, the company would "focus on new FLNG growth opportunities".

Background on Argentina’s Southern Energy project

In May 2025, while announcing the potential deal for Golar’s 3.5M tonnes per annum (mta) MKII, the Argentia project’s consortium of companies took a final investment decision on its first 20-year FLNG charter deal for the export project. 

The May FID sanctioned a 20-year charter and deployment deal for FLNG Hilli Episeyo that was agreed between Pan American Energy and Golar LNG in July 2024. The two FIDs and their charter deals are similar in structure.

Acquired by Golar in 2023, MK II, a 2004-built LNG carrier previously called Fuji LNG, is currently undergoing a conversion at CIMC Raffles shipyard in Yantai, China. And, in late August 2025, Golar said it had reached a deal with Singaporean shipyard Seatrium to convert 2.45-mta Hilli Episeyo for use in the Argentinian dual-FLNG project.

"The project has received the full support of the national and provincial governments in Argentina that granted all necessary approvals including the first ever unrestricted 30-year LNG export authorisation in Argentina," Golar said in a statement on the deal in May 2025.

Golar said it believes the project will monetise Argentina’s gas, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest known shale gas resource.

The Southern Energy partners are targeting production start-up from Hili Episeyo around year-end 2027 with MK II expected to commence operations at the end of 2028. 

The FLNGs will be located in close proximity to each other, in the Gulf of San Matias off Argentina’s Rio Negro province.

FLNG Hilli will initially utilise spare volumes from the existing pipeline network. Southern Energy said it intends to facilitate construction of a dedicated pipeline from Vaca Muerta to the Gulf of San Matias to serve gas supply to the FLNGs.

Golar chief executive Karl Fredrik Staubo said, "The vast resources of the Vaca Muerta formation will provide the LNG market with a reliable long-term source of attractive LNG supplies, and a significant contribution to Argentina."

In 2023, Golar said it considers a fully utilised Hilli has annual revenue potential in excess of US$1Bn. Hilli’s nameplate capacity of 2.45 mta is smaller than MKII’s nameplate capacity of 3.50 mta, with the total project’s nameplate capacity at 5.95 mta. Hilli’s charter nets Golar US$285M per year while MKII’s brings in a net of US$400M per year.

Golar LNG holds a 10% stake in the Southern Energy joint venture while Pan American Energy holds a 30% managing stake. YPF has a 25% stake, Pampa Energia 20% and Harbour Energy 15%.