Southern Energy (SESA), a consortium of Pan American Energy (PAE), YPF, Pampa Energía, Harbour Energy, and Golar LN, signed a framework agreement earlier this month with Germany’s Securing Energy for Europe (SEFE) for the long-term sale of LNG.
Under the agreement, SESA would supply 2 million tonnes/year (tpy) of LNG over an 8-year period starting in late 2027.
A logistical key to the deal líes in the Hilli Episeyo, the first of the two FLNG vessels SESA will install in the San Matías Gulf, Río Negro province. The Hilli Episeyo is expected to begin operations offshore Argentina in late 2027.
LNG volumes committed to Germany cover more than 80% of the vessel's 2.45-million tpy production capacity, and over 30% of the total 6-million-tpy capacity of the two vessels combined.
Rodolfo Freyre, chairman of Southern Energy, said the agreement “will constitute the first large-scale sale of LNG from Argentina and represents a milestone for the future development of the natural gas reserves in Vaca Muerta."
