Argentina’s Southern Energy Project announced on Friday that it has reached an agreement with Golar LNG for a second liquefaction vessel with a capacity of 3.5 million metric tons of liquefied natural gas (LNG) per year. The vessel is expected to arrive in Argentina in 2028.

As part of the Southern Energy Project, state oil producer YPF and other oil companies are working towards launching Argentina’s first liquefaction vessel by 2027.

“One of the world’s largest floating LNG projects in Argentina has been officially confirmed,” stated Argentina’s Economy Minister, Luis Caputo. He highlighted that the two vessels combined will have the capability to export approximately $2.5 billion worth of LNG annually for the next two decades.

Caputo also mentioned the necessity of constructing a new dedicated gas pipeline to supply the two liquefaction vessels on the coast of Río Negro. This significant investment is projected to enable Argentina to liquefy 26 million cubic meters per day of natural gas starting in 2027.

This partnership between Argentina’s Southern Energy Project and Golar LNG represents a significant step forward in the country’s energy sector, positioning Argentina as a key player in the global LNG market.

(Source: Reuters)