Golar LNG Secures 20-Year Charter with Argentina's Southern Energy for LNG Exports

What's Happening?

Golar LNG has announced a significant development in its operations with the finalization of a 20-year charter agreement with Southern Energy S.A. (SESA) for its MK II floating LNG (FLNG) unit. This agreement, which follows definitive agreements signed in May 2025, marks a major step in Argentina's efforts to become a leading LNG exporter. The FLNG unit, currently being converted in China, is expected to be delivered to Argentina by 2028. Once operational, it will be moored in the San Matías Gulf alongside another FLNG unit, Hilli, which is set to begin its own 20-year charter in 2027. Together, these units will have a combined capacity of 5.95 million tonnes per annum (mtpa). SESA, a consortium of domestic energy producers including Pan American Energy, YPF, Pampa Energia, Harbour Energy, and Golar, aims to leverage this infrastructure to boost Argentina's LNG export capabilities.

Why It's Important?

This development is crucial for Argentina as it positions itself as a significant player in the global LNG market. The agreement not only enhances Golar LNG's market presence but also promises substantial economic benefits, with $8 billion in net earnings visibility over the 20-year period. The project is expected to create operational efficiencies and shared infrastructure benefits, potentially lowering costs and increasing competitiveness. For Argentina, this could mean increased energy exports, economic growth, and a stronger foothold in the energy sector. The involvement of major domestic energy producers underscores the strategic importance of this initiative for the country's energy policy and economic strategy.

What's Next?

The project is subject to regulatory and customary closing conditions, which are anticipated to be fulfilled by 2025. As the FLNG units become operational, stakeholders will likely focus on optimizing the infrastructure and exploring further opportunities for expansion in the LNG market. The success of this venture could lead to increased investments in Argentina's energy sector and potentially attract more international partnerships.