The Argentine consortium that they make up Southerm Energy -which make up: Pan American Energy, YPF, Pampa Energía, Harbor Energy and Golar LNG- sealed an agreement with the German state company SEFE (Securing Energy for Europe) for the export of liquefied natural gas (LNG) from Argentina for a period of eight years. The understanding contemplates the sale of 2 million tons annually starting at the end of 2027 and for 8 years.
The operation would be the largest sale of LNG from Argentina in the world in terms of volume and term, and will begin in 2027, when the “Hilli Episeyo” liquefier vessel comes into operation, which will be installed in the San Matías Gulf, in Río Negro.
The agreement, signed by Rodolfo Freyre, chairman of Southern Energy, and Frédéric Barnaud, CCO of SEFE, is presented by the companies as the largest LNG operation in the country towards the international market both in volume and duration. According to industry estimates, Associated exports could exceed US$ 7,000 million during the term of the contract, always subject to the evolution of global gas prices.
The committed volume represents more than 80% of the production capacity of the “Hilli Episeyo”, an FLNG with the potential to liquefy near of 2.45 million tons per year, and more than 30% of the total planned capacity for the two vessels that Southern Energy plans to operate on the Rio Negro coast.
In the agreement signed by Rodolfo Freyre, Chairman of Southern Energy, and Frédéric Barnaud, CCO of SEFE. Also present were Marcos Bulgheroni, Group CEO of PAE; Santiago Martínez Tanoira, Executive Vice President of Gas and Energy of YPF; Horacio Turri, Executive Vice President and Executive Director of Exploration and Production of Pampa Energía; Martín Rueda, Managing Director of Harbor Energy in Argentina; and Federico Petersen, Chief Commercial Officer of Golar LNG
Southern Energy (SESA) is the consortium made up of Pan American Energy, YPF, Pampa Energía, Harbor Energy and Golar LNG, created to monetize Vaca Muerta gas via LNG exports. The project already has a final investment decision for the first vessel and foresees an expansion with a second floating unit, with a long-term commitment to position Argentina as a stable supplier in the world market.
From the European demand, SEFE—an international gas company controlled by the German State— seeks to expand its supply portfolio with long-term contracts and geographic diversification. In this framework, the agreement with Southern Energy opens a new supply route from South America to the European market.
The parties anticipated that the “Heads of Agreement” will be converted into a final purchase and sale contract in the coming months, a necessary step to finish closing the commercial engineering of the project and ensure the start of shipments from 2027.