Golar LNG Secures Long-Term Charter for Argentina's LNG Export Scheme

What's Happening?

Golar LNG has secured a 20-year charter agreement with Southern Energy S.A. (SESA) for a floating LNG (FLNG) unit to support Argentina's LNG export ambitions. The deal involves a net charter hire of $400 million annually, with additional earnings linked to commodity prices. The FLNG unit, currently being converted in China, is expected to commence operations in Argentina by 2028. This project, involving a consortium of Argentinian gas producers, aims to establish Argentina as a significant LNG exporter.

Why It's Important?

This agreement marks a pivotal step in Argentina's strategy to become a major player in the global LNG market. The long-term charter provides Golar with substantial earnings visibility and potential upside from commodity-linked tariffs. For Argentina, the project promises to enhance energy export capabilities, potentially boosting the national economy and energy sector. The collaboration also underscores the growing importance of FLNG technology in expanding global LNG supply chains.

What's Next?

The project is subject to regulatory approvals and other conditions, expected to be fulfilled by 2025. As the FLNG unit becomes operational, Argentina could see increased foreign investment and strengthened trade relationships. The success of this venture may encourage further development of LNG infrastructure in the region, positioning Argentina as a competitive LNG supplier in South America.