Southern Energy issues FID for FLNG project offshore Argentina

Golar LNG Ltd. says that Southern Energy S.A. (SESA) has reached final investment decision (FID) for the charter of Golar’s 3.5-MTPA MK II FLNG, as contemplated under the terms of the definitive agreements executed by SESA and Golar in May 2025. 

The key commercial terms for the 20-year charter agreement include net charter hire to Golar of $400 million per year, plus a commodity-linked tariff component of 25% of FOB prices in excess of $8/MMbtu.

The FLNG vessel, currently under conversion in China, will sail to Argentina following her redelivery, with contract start-up expected during 2028.

The MK II FLNG vessel will be moored in the San Matías Gulf near the FLNG Hilli, which is expected to start its 20-year charter with SESA during 2027. Combined, the two units have a nameplate capacity of 5.95 MTPA, and the project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area.

SESA, a company formed to enable LNG exports from Argentina, SESA is owned by a consortium of Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%). 

The MK II FLNG project remains subject to regulatory conditions precedent and satisfaction of other customary closing conditions which are progressing according to schedule and expected within 2025.