Tor Olav Trøim’s Golar LNG has entered an agreement with Pan American Energy for the 20-year deployment of a floating liquefied natural gas (FLNG) vessel in Argentina
The project aims to utilise Golar’s FLNG Hilli, with a nameplate capacity of 2.45M tonnes per annum (mta), providing an equivalent net tariff of US$2.6/mmBtu based on 90% capacity utilisation, with an additional commodity-linked pricing element. Golar has the flexibility to consider a swap alternative for another suitable Golar FLNG unit.
As part of the agreements, Golar LNG will hold a 10% stake in Southern Energy SA, a joint venture with Pan American Energy, responsible for purchasing domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.
The FLNG specialist 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 shale gas resources.
The project is expected to start exporting LNG by 2027, which will establish Argentina as a significant exporter of natural gas.
This initiative is envisaged to be the first phase of a potential multi-vessel project it is anticipated other large natural gas producers in Argentina will join.
Golar LNG chief executive Karl Fredrik Staubo said, “We are excited to enter a partnership with Pan American Energy, one of the leading energy companies in Latin America. The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value to Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential.”
Golar owns the world’s largest fleet of FLNG units by annual liquefaction capacity.
Pan American holds interests across the whole hydrocarbon value chain across Latin America, producing 250,000 boed, with more than 2,300M boe of net 2P reserves, and an energy transition agenda that involves renewable power, LNG, lithium and biofuels.
Riviera’s LNG Shipping & Terminals Conference will be held in London, 12 November 2024. Click here to register your interest in this industry-leading event.
Events
© 2024 Riviera Maritime Media Ltd.