Belgium gas shipowner and infrastructure provider Exmar has relocated its floating LNG production barge from Argentina to Uruguay.
The 500,000 tonne per annum capacity Tango FLNG unit was due to arrive under tow off Nueva Palmira on 10 November.
The company said in its third-quarter results last month that the midsize floater was being prepared for demobilisation.
'Flawless'
Exmar officials said the company is “working hard on remarketing the unit”, describing its previous operations under its charter to Argentina’s YPF as “flawless”.
“It is the only gas monetisation solution that can be made available on a very short-term basis,” one official said.
Exmar said in its results statement that commercial leads for new employment for Tango FLNG are actively being pursued.
The innovative barge-based LNG floater — the smallest of the four operable FLNG units to date worldwide — has had a roller-coaster history.
LNG production capacity: 500,000 tonnes per annum
LNG storage: 16,100 cbm
Storage tanks: Type-C
Draught: 5.4 metres
LOA: 144 metres
Beam: 32 metres
Depth: 20 metres
Liquefaction technology: Black & Veatch Prico SMR
Shipbuilder: Wison Offshore & Marine
It was ordered in 2012 in China. Originally known as Caribbean FLNG, it was chartered to Pacific Rubiales Energy (PRE) for a project in Colombia. But PRE filed for Chapter 11 in 2016 and Exmar was forced to take delivery of the unit in 2017 without a charter in place.
In November 2018, Exmar inked a 10-year charter with YPF on the floater based on a tolling agreement relating to LNG production.
The unit was renamed Tango FLNG and shipped on a heavylift vessel to a quayside location in Bahia Blanca, near to Buenos Aires, in February 2019. It started operations three months later.
The unit produced six cargoes from natural gas piped some 750 km onshore from Argentina’s Vaca Muerta shale gas reserves in the Neuquen Basin.
But those watching the project said there were issues with upstream investment on gas and, in the interim, Argentina's government and YPF's management changed.
Pandemic impact
In June this year, YPF declared force majeure on its charter and services agreement for Tango FLNG, citing the effects of the Covid-19 pandemic.
Exmar said it considered the notice unlawful and started arbitration.
Last month, the company reached a $150m settlement with YPF over the early termination of the charter on the unit.
Exmar said it has received a first payment of $22m, with the $128m balance to be paid in 18 monthly instalments backed by a financial security issued by an investment grade counterparty.
