Southern Energy announced the incorporation of a second floating liquefaction vessel for its liquefied natural gas export project (LNG), consolidating Argentina as a future key player in the global market.
The initiative, which involves Pan American Energy, YPF, Pampa Energía, Harbour Energy, and Golar LNG, includes a total annual production capacity of 6 million tons of LNG.
A new step for "Argentina LNG"
The signing of the contract for the second ship, named "MKII," represents a key advancement in the execution of the "Argentina LNG" plan. This new vessel will join the "Hilli Episeyo," the first confirmed to operate from the San Matías Gulf, in the province of Río Negro.
Both units will allow:
- A combined liquefaction capacity of 6 million tons of LNG annually
- The equivalent of 27 million cubic meters of natural gas daily
- Continuous annual operation, thanks to the future construction of a dedicated pipeline from Vaca Muerta
Details of the agreement and operations schedule
The agreement signed with Golar LNG has a duration of 20 years. The MKII vessel is currently under construction in China and is expected to arrive in the country in 2028, beginning its commercial operation toward the end of that year. This ship alone will be able to produce 3.5 million tons of LNG per year, equivalent to almost 16 million cubic meters of gas daily.
The shareholding of Southern Energy was established as follows:
- Pan American Energy: 30%
- YPF: 25%
- Pampa Energía: 20%
- Harbour Energy: 15%
- Golar LNG: 10%
Investment, certifications, and projected benefits
Southern Energy also advanced with the final investment decision (FID) for the "Hilli Episeyo," which involves a commitment of USD 7 billion over 20 years across the entire value chain. This investment will enhance the development of Vaca Muerta as a supply source and multiply opportunities for the national energy sector.
The project already has:
- Certificate of Authorization for Free Export of LNG for 30 years, granted by the Energy Secretariat
- Approval of the Environmental Impact Study by the government of Río Negro
- Formal application for adherence to the Incentive Regime for Large Investments (RIGI)
In addition to generating foreign exchange through exports, the installation of the vessels will allow:
- Creation of direct and indirect employment
- Boost to local suppliers
- Introduction of new technologies and industrial processes
- Diversification of markets for Argentine energy products
