The Southern Energy consortium and Berlin-based group Securing Energy for Europe (SEFE) have signed an eight-year agreement for the export of liquefied natural gas (LNG) from the Vaca Muerta basin.
The contract provides for the shipment of two million tonnes per year over an eight-year period, according to a statement.
Operations will begin at the end of 2027 in the Golfo San Matías, in Río Negro Province, using the liquefaction vessel Hilli Episeyo.
The projected volume represents “more than 80 percent of the production capacity” of that unit and 30 percent of the combined capacity of the two vessels to be installed in the area.
According to a statement from Southern Energy – a consortium comprising PAE, YPF, Pampa Energía, Harbour Energy and Golar LNG – negotiations concluded yesterday in Berlin with the signing of the final contract.
The transaction represents “the largest LNG sale from Argentina to the world in terms of volume and duration.”
The agreement concludes a process that formally began last December, when the two companies announced a framework accord, or “Heads of Agreement,” to negotiate the terms of sale.
The signing ceremony took place at the AXICA Convention Centre in Berlin and was attended by senior executives from the companies involved and diplomatic authorities.
Those present included Rodolfo Freyre, president of SESA; Frédéric Barnaud, chief commercial officer of SEFE; and Marcos Bulgheroni, Group CEO of PAE.
Also in attendance were Martin Rueda of Harbour Energy; Patricio Da Ré of YPF; and Golar LNG executives Karl Staubo and Federico Petersen.
The Argentine delegation was accompanied by the ambassador to the Federal Republic of Germany, Betina Pasquali de Fonseca.
Representing SEFE were its CEO, Dr Egbert Laege; supervisory board member Doris Honold; Jean-Manuel Conil-Lacoste, executive vice-president for LNG; and Sharif Islam, vice-president for LNG Origination–Atlantic.
The presence of these authorities underlines the international scale of the energy project.
From a technical standpoint, production will initially be concentrated on the “Hilli Episeyo,” which has a capacity of “2.45 million tonnes of LNG per year.”
Southern Energy’s overall project includes a second vessel, with the aim of reaching a combined production capacity of “six million tonnes of LNG per year.”
The official document states that the primary objective is to “monetise the vast gas resources of Vaca Muerta.”
The consortium also stressed that revenues generated by the export will “create a genuine source of foreign currency for the country’s external accounts,” consolidating the integration of domestic energy production into global markets.
– TIMES/NA
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