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Golar LNG Secures 20-Year Contract for FLNG Deployment in Argentina

Golar LNG, a floating liquefied natural gas specialist backed by Olav Trøim, has entered into definitive agreements with Pan American Energy for a 20-year deployment of an FLNG vessel in Argentina. This FLNG project aims to monetize Argentine gas, leveraging the extensive resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas reserve. The project is slated to commence LNG exports by 2027.

The venture includes a gas sales agreement from Pan American for gas supply and an FLNG charter agreement with Golar, featuring a base tariff and exposure to LNG sales prices. The project plans to use Golar’s FLNG Hilli, which has a capacity of 2.45 million tonnes per annum. This provides an equivalent net tariff of $2.6 per mBtu based on 90% capacity utilization, along with an additional commodity-linked pricing element. Golar also retains the option to swap the Hilli for another suitable FLNG unit.

Currently, the Hilli operates for Perenco in Cameroon under the name Hilli Episeyo. Built in 1975 and converted to an FLNG in 2017, it will conclude its operations in Cameroon in the second quarter of 2026.

As part of the agreements, Golar will hold a 10% stake in Southern Energy SA, a joint venture with Pan American Energy. This venture will be responsible for purchasing domestic natural gas, and overseeing operations, sales, and marketing of LNG volumes from Argentina.

Golar CEO Karl Fredrik Staubo stated, “The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value for Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential.” This initiative marks the first phase of a potential multi-vessel project, with other large natural gas producers in Argentina potentially joining in the future.

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