Lens Gas & LNG: Golar and partners' FID set to revive Argentina's LNG export ambitions

Golar LNG (Golar) and Southern Energy S.A. (SESA) have taken Final Investment Decision (FID) on the first phase of the Southern Energy FLNG project in Argentina’s Rio Negro province. The FID follows closely after Woodside sanctioned its Louisiana LNG project and takes sanctioned LNG capacity in 2025 to around 19 mmtpa. 

The agreement sees SESA lease Golar’s Hilli Episeyo FLNG (2.45 mmpta) for 20-years, following the mid-2026 expiration of Hilli’s contract with Perenco in Cameroon. FID concludes an initial agreement announced in July 2024 and follows various regulatory approvals, including the first ever 30-year export licence in Argentina and qualification for the Incentive Regime for Large Investments (RIGI). 

Further, Golar and SESA announced the signing of definitive agreements for the second phase of Southern Energy FLNG. It comprises a 20-year agreement for SESA to lease Golar’s MKII FLNG (3.5 mmtpa), currently under conversion at the CIMC Raffles shipyard in Yantai, China. This agreement remains subject to FID and the same regulatory approvals that were granted for Southern Energy FLNG Phase 1. 

Please watch our video summary of the announcement using Wood Mackenzie’s Lens Gas & LNG platform below. Our analysis delves into the previous deployment of the Hilli vessel and our forecast for its exports from Argentina.