Pampa Energia is joining a floating LNG production project in Argentina put together by Golar LNG and Pan American Energy.
The Argentinian energy company will initially hold a 20% stake in Southern Energy, the entity established by Pan American and Golar for the project, becoming its second-largest shareholder.
Pampa said that during the project’s initial stage, it has committed to supplying more than 100m cubic feet per day of natural gas from its Neuquina Basin blocks, where it currently produces an annual average of 0.5 billion cubic feet (bcf) per day, with peaks of 0.6 bcf per day in winter.
“With an estimated investment of $2.9bn over the next 10 years, the project represents a strategic milestone to monetise Pampa’s Vaca Muerta reserves and position Argentina in the global LNG market,” Pampa said.
The project will use Golar’s 2.45-mtpa FLNG unit Hilli, which will be relocated from Cameroon, upgraded and modified before being stationed in the San Matias Gulf in Argentina’s Rio Negro province.
In October, Pan American Energy issued a 20-year reservation notice on Hilli.
The unit is due to be operational in the second half of 2027.
Last week, it emerged that domestic energy company YPF is also joining the FLNG project line-up.
The development of the Vaca Muerta reserves could involve the use of multiple FLNG units if a pipeline is constructed.
Golar officials has spoken about the possibility of deploying Golar’s on-order 3.4-mtpa FLNG Mk II unit, which delivers in the fourth quarter of 2027, in Argentina.
Southern Energy has also applied for grants under Argentina’s Incentive Regime for Large Investments as it qualifies as a Long-Term Strategic Export Project, Pampa said.
