Golar LNG signed a deal with the leading energy company in Latin America, Pan American Energy, for a 20-year deployment of a floating liquefied natural gas (FLNG) vessel in Argentina, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas resources.  

The project is expected to begin LNG exports in 2027, establishing Argentina as an LNG exporter.

Golar LNG said the project aims to utilize its FLNG Hilli, with a nameplate capacity of 2.45M tons/year.

As part of the deal, the company said it will hold a 10% stake in Southern Energy S.A., a joint venture with PAE, which will be responsible for the purchase of domestic natural gas, operations, sale and marketing of LNG volumes from Argentina.

The company sees the initiative as the first phase of a potential multi-vessel project, anticipating that other large natural gas producers in Argentina will join.

Karl Fredrik Staubo, Golar’s chief executive, said: “The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value to Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential.”