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Golar LNG nets 20-year FLNG agreement

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Project will establish Argentina as LNG exporter

Golar LNG has entered into definitive agreements with Pan American Energy for a 20-year deployment of a floating liquefied natural gas (FLNG) vessel in Argentina.

The FLNG project will monetize Argentine gas, tapping into the 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 LNG exports within 2027, establishing Argentina as an LNG exporter.

This strategic venture includes 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.

Golar LNG signs a 20-year FLNG deal in Argentina. (Image: Golar LNG)

The project aims to utilize 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% capacity utilization) with an additional commodity-linked pricing element. Golar said it has flexibility to consider a swap alternative for another suitable Golar FLNG unit.

As part of the agreements, Golar will hold a 10% stake in Southern Energy S.A., 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 and it is anticipated that other large natural gas producers in Argentina will join.

The agreements are subject to sign-off of customary conditions.

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