Golar’s 3.5MTPA MK II FLNG will be deployed for contract start-up in Argentina during 2028, in line with a final investment decision following definitive agreements executed by Argentinian gas producers consortium, Southern Energy SA, and Golar in May 2025.
The key commercial terms for the 20-year charter agreement include net charter hire to Golar of US$400mn per year, plus a commodity linked tariff component of 25% of FOB prices in excess of US$8/mmbtu.
The FLNG, currently under conversion in China, will sail to Argentina following her redelivery. The MKII FLNG 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 5.95MTPA, and the project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area.
Regulatory and related customary closing conditions for the MKII FLNG project is expected by this year.
Golar’s Chief Executive Officer, Karl Fredrik Staubo, said, “Today’s FID marks another milestone for SESA in establishing Argentina as an attractive LNG exporter and building on Golar’s position as the market leading FLNG service provider. FID solidifies US$8bn of net earnings visibility over 20 years to Golar, with attractive upside potential in the FLNG commodity tariff component and through our shareholding in SESA. We look forward to continuing to develop the SESA partnership into a leading LNG exporter in South America.”
The SESA consortium comprises Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%).
