This strategic venture is built on a robust commercial foundation, featuring: (i) a gas sales agreement from PAE for the supply of gas; and (ii) an FLNG charter agreement with Golar which includes a base tariff and commodity exposure to LNG sales prices.
The project aims to utilise Golar’s FLNG Hilli, with a nameplate capacity of 2.45 million tpy, providing an equivalent net tariff of US$2.6/million Btu (based on 90% capacity utilisation) with an additional commodity-linked pricing element. Golar has flexibility to consider a swap alternative for another suitable Golar FLNG unit.
As part of the agreements, Golar will hold a 10% stake in Southern Energy S.A., a dedicated joint venture with PAE, responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.
This initiative is envisaged to be the first phase of a potential multi-vessel project and it is anticipated that other large natural gas producers in Argentina will join.
Golar’s CEO, Karl Fredrik Staubo, said “We are excited to enter a partnership with Pan American Energy, one of the leading energy companies in Latin America. The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value to Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential.”
The agreements are subject to sign-off of customary conditions.
