Golar LNG Limited (“Golar”) announced that Southern Energy S.A. (“SESA”) has reached Final Investment Decision (“FID”) for the charter of Golar’s 3.5 MTPA MK II Floating Liquefied Natural Gas unit (“FLNG”), based on definitive agreements signed between SESA and Golar in May 2025.
The 20-year charter agreement includes a net charter hire of USD 400 million per year payable to Golar, in addition to a commodity-linked tariff component of 25% of FOB prices above USD 8 per MMBtu.
The MK II FLNG is currently being converted in China and will be deployed to Argentina following redelivery.
The contract is expected to commence in 2028. The unit will be moored in the San Matías Gulf, near the FLNG Hilli, which is scheduled to begin a 20-year charter with SESA in 2027.
Together, the two FLNGs will have a combined nameplate capacity of 5.95 MTPA.
The project aims to realize operational efficiencies and synergies from the two units being located in the same area.
SESA is owned by a consortium including Pan American Energy (30%), YPF (25%), Pampa Energia (20%), Harbour Energy (15%), and Golar (10%).
The MK II FLNG project is subject to regulatory and customary closing conditions, which are progressing and are expected to be satisfied within 2025.
Golar LNG Limited is a publicly traded company incorporated in Bermuda and listed on the NASDAQ. It focuses on the development, ownership, and operation of marine infrastructure for the liquefaction, transportation, and regasification of natural gas, particularly through floating LNG solutions (FLNGs).
Southern Energy S.A. is a joint venture established to facilitate LNG export operations from Argentina.