Golar Sees Strong Demand for Additional Argentina LNG Volumes
Golar LNG has reported strong demand from prospective buyers for additional liquefied natural gas (LNG) volumes from its Argentina export project, which is set to start in 2027. The company's Southern Energy unit, a consortium of major gas producers including Pan American Energy and YPF, initiated a bidding process for extra LNG production after signing an eight-year agreement with Securing Energy for Europe (SEFE) to sell 2 million tonnes annually.
The proposals received through the bidding process indicate strong interest from off-takers, providing an early indication of demand for volumes beyond those already contracted. Golar has budgeted approximately $350 million for upgrades, positioning, operating costs, fuel, and insurance during the transition period.
FLNG Hilli is expected to begin its 20-year Argentina contract in the second half of 2027, while FLNG Esperanza will start operating in the second half of 2028. The two floating LNG vessels will provide liquefaction capacity that allows Argentina's natural gas resources to be converted into LNG for export markets.