Argentine energy company, Pampa Energía is to participate in an FLNG project, led by Pan American Energy (PAE), for the liquefaction and export of LNG.
The project involves deploying Golar LNG’s FLNG, ‘Hilli Episeyo’, in Argentina’s San Matías Gulf, Río Negro province, together with the construction of the supporting infrastructure.
The FLNG will have a production capacity of 2.45 mill tonnes per year of LNG, equivalent to 11.5 mill cu m or 0.4 bill cu ft of natural gas per day when it starts operations scheduled for 2027.
Pampa will initially hold a 20% stake in Southern Energy (SESA), the entity established by PAE and Golar to undertake the project, becoming its second largest shareholder.
During the project’s initial stage, Pampa has committed to supply up to 3 mill cu m of natural gas per day from its Neuquina Basin blocks, where it currently produces an annual average of over 13 mill cu m, with peaks of 17 mill cu m per day in winter.
With an estimated investment of $2.9 bill over the next 10 years, the project represents a strategic milestone to monetise Pampa’s Vaca Muerta reserves and position Argentina in the global LNG market, the company said.
SESA has applied for Argentina’s Incentive Regime for Large Investments (RIGI) scheme, as the project meets the criteria outlined in the Ley Bases and Executive Order No. 749/24 to qualify as a ‘Long-Term Strategic Export Project.’
This comes after the news that Argentina’s YPF will merge its LNG project with PAE’s FLNG project. YPF CEO, Horacio Marin said: “This is a $3 bill investment that allows Argentina to position itself as a key LNG supplier from 2027.”
YPF will join the initiative, Martin added, with which “we hope to export $15 bill in LNG by 2030.
“We will continue to work together to transform Vaca Muerta gas into LNG and to maximise the efficiency and profitability of the entire sector in the Neuquén basin,” he said.
