(WO) — Golar LNG announced that Southern Energy S.A. (SESA) has reached a Final Investment Decision (FID) for the 20-year charter of Golar’s 3.5 mtpa MK II floating LNG (FLNG) unit. The decision follows definitive agreements signed between the parties in May 2025.
Under the agreement, Golar will receive a fixed net charter hire of $400 million per year, plus a commodity-linked tariff component equal to 25% of FOB prices exceeding $8/MMBtu. The FLNG is currently undergoing conversion in China, with delivery to Argentina scheduled for 2028.
Once delivered, the MK II FLNG will be moored in the San Matías Gulf near Golar’s FLNG Hilli, which is set to begin its own 20-year charter with SESA in 2027. Together, the two FLNG units will have a combined nameplate capacity of 5.95 mtpa and are expected to benefit from shared infrastructure and operational efficiencies.
SESA was formed to enable LNG exports from Argentina and is owned by a consortium of domestic energy producers: Pan American Energy (30%), YPF (25%), Pampa Energia (20%), Harbour Energy (15%), and Golar (10%).
“The 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,” said Karl Fredrik Staubo, CEO of Golar LNG. “FID solidifies $8 billion 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 project remains subject to regulatory and customary closing conditions, which are expected to be satisfied in 2025.
