Southern Energy consortium reached an agreement with Germany's SEFE for the largest LNG deal in national history
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Argentina has completed its first major liquefied natural gas (LNG) export operation to a European country, which, in terms of both volume and duration, is also the largest LNG operation ever signed by Argentina. The consortium Southern Energy (SESA)—comprised of PAE, YPF, Pampa Energía, Harbour Energy, and Golar LNG—signed an agreement with SEFE Securing Energy for Europe, Germany's state-owned energy company, to sell 2 million tons of LNG annuallyfor eight years starting at the end of 2027.
The contract will take effect when the Hilli Episeyo, the first of two factory ships that Southern Energy will install in the San Matías Gulf in Río Negro, becomes operational. That unit can produce 2.45 million tons of LNG per year, of which Germany has already secured more than 80%. If the total capacity of both ships is considered, the agreement represents more than 30% of the entire project. Frederic Barnaud (SEFE) y Rodolfo Freyre (Southern Energy) The economic impact is significant. According to industry estimates, exports linked to the contract could exceed US$7 billion during its term, generating genuine foreign currency for the country and consolidating the strategic role of Argentine gas in the global market. In addition, Southern Energy has already committed more than US$15 billion for the comprehensive development of the project over 20 years.
The signing of the agreement brought together the main executives of the national energy sector: Rodolfo Freyre (PAE), Santiago Martínez Tanoira (YPF), Horacio Turri (Pampa Energía), Martin Rueda (Harbour Energy), and Federico Petersen (Golar LNG). Freyre emphasized that the operation constitutes "the first large-scale LNG sale from Argentina and a milestone for the future development of Vaca Muerta's reserves."
From Berlin, Frédéric Barnaud, Chief Commercial Officer of SEFE, highlighted that this is the company's first LNG contract with a South American supplier, a decision aimed at diversifying the European energy matrix and strengthening its supply security. He also noted the operational continuity associated with the Hilli Episeyo, which will be relocated from Cameroon to Patagonia. Directivos de los consorcios firmantes.
The energy progress is not only commercial. In parallel with the agreement, the MV Billion Star vessel arrived at the port of San Antonio Este with 10,000 tons of steel pipes for the construction of the Argentina FLNG project pipeline. The logistical movement is already beginning to energize metalworking suppliers, stevedores, transporters, and local workers, consolidating Río Negro as a key hub in the future export scheme.
With this historic agreement, Argentina joins the league of countries capable of exporting LNG on a large scale. A project that for decades remained trapped between regulations, controls, and disinvestment is finally getting underway today and opens the door to a sustained cycle of foreign currency, employment, and productive development that can forever transform the national energy matrix. For the first time in decades, the country is once again generating real confidence in international markets.
