Golar LNG signs 20-year FLNG deal in Argentina

Golar LNG has signed a 20-year definitive agreement with Pan American Energy for a floating liquefied natural gas (FLNG) vessel in Argentina.

Set to be operational in 2027, the project will likely utilise Golar’s FLNG Hilli, which has a nameplate capacity of 2.45 million tonnes per annum. That said, there is flexibility in the contract to swap for an alternative FLNG vessel.

The project will monetise Argentina’s gas, tapping into rouses from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second largest shale gas resource.

As part of the contract, Golar LNG will also acquire a 10% stake in Southern Energy, a joint venture with Pan American Energy that is focused on the purchase of domestic natural gas, operations, and sale and marketing of LNG from Argentina.

Karl Staubo, CEO of Golar LNG, said the project will expand the company’s global footprint and holds further growth potential.

He added, “The project will provide an international outlet or Argentina’s vast and attractive natural gas reserves, creating value to Argentina and its gas stakeholders.”

The agreement is subject to sign-off of customary conditions.

Last month (June 2024), Golar LNG signed a deal to develop a floating LNG (FLNG) facility offshore the Niger Delta in Nigeria for the Nigerian National Petroleum Company (NNPC).

Read more: NNPC progresses FLNG with Golar LNG

The agreement aims to monetise large proven gas reserves from shallow water resources offshore Nigeria. The PDA also outlines the monetisation plan that will use around 400-500 million cubic feet per day and produce LNG, LPG, and condensate.

The partners have expressed want to achieve final investment decision before the end of Q4 and first gas by 2027.

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