Golar LNG has secured a major milestone as Southern Energy S.A. (SESA) officially reached the Final Investment Decision for the charter of its 3.5 MTPA MK II FLNG vessel. This 20-year agreement promises a net charter hire of US $400 million per year, along with a commodity-linked tariff tied to LNG prices above US $8 per MMBtu.
Twin FLNG Units to Transform Argentine Export Hub
Upon completion of its conversion in China, the MK II FLNG will journey to Argentina, with its contract start-up slated for 2028. It will take station in the San Matías Gulf alongside the FLNG Hilli — which is already scheduled to begin its own 20-year charter with SESA in 2027. Combined, the two floating vessels will offer an impressive nameplate capacity of 5.95 MTPA, unlocking considerable operational synergies and efficiencies.
Deep Earnings Visibility and Strategic Growth
This FID represents not just a project win — it ushers in US $8 billion in net earnings visibility for Golar over the span of 20 years. The structure, combining a stable charter rate with upside tied to LNG price surges, solidifies Golar’s financial footing and positions it as a dominant player in the burgeoning South American LNG space.
A Strong Consortium and Optimistic Outlook
SESA, the Argentinian-based export platform, is backed by leading domestic energy players including Pan American Energy, YPF, Pampa Energía, Harbour Energy, and Golar itself holding a 10% stake. Golar’s CEO emphasized that this decision not only elevates Argentina’s status as an LNG exporter but also reinforces Golar’s leadership in FLNG solutions, while boosting upside potential through its equity participation.
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Source: Golar LNG
