Golar LNG has entered agreements with Pan American Energy (PAE) covering a 20-year deployment of a the FLNG Hilli vessel offshore Argentina.
This will liquefy gas produced from the Vaca Muerta Shale formation in the onshore Neuquina Basin, with LNG exports set to start in 2027.
The arrangements include a sales agreement for the supply of gas and the FLNG charter agreement, which includes a base tariff and commodity exposure to LNG sales prices.
Golar LNG expects to use the Hilli’s full nameplate capacity of 2.45 MMt/year, although the agreements also allow for deployment of an alternative Golar FLNG vessel.
The company will also take a 10% stake in Southern Energy, a dedicated joint venture with PAE, which will be responsible for the purchase of domestic natural gas, operations and sale/marketing of LNG volumes from Argentina.
Golar added that this could be the first phase of a potential multi-vessel project with other large natural gas producers in Argentina invited to join.
