Sebastián D. Penelli British company Harbour Energy has joined Pan American Energy and Golar LNG’s Southern Energy liquefied natural gas (LNG) project. The development comes a few days after Argentine company Pampa Energía decided to join the project with a 20% stake. The Herald’s sister publication Ámbito has learned that Argentine state-owned energy giant YPF will also be joining the project.
YPF will thus take part in a project that will demand a US$2.9 billion investment and is expected to export 11.5 million cubic meteres of LNG per day. The company will have a 15% stake in the venture. Stakes in the company will be as follows:
PAE: 40%
Pampa Energía: 20%
YPF: 15%
Harbour Energy: 15%
Golar LNG: 10%
What is the PAE LNG project?
The Southern Energy project led by Pan American Energy is expected to export 11.5 million cubic meters of natural gas per day. The enterprise will demand a US$2.9 billion investment over the next 10 years and is expected to reach US$7 billion throughout the project’s lifecycle. The project will oversee the installation and operation of the floating LNG vessel Hilli Episeyo — owned by Golar LNG and hired by Southern Energy — in the San Matías Gulf, off the coast of Río Negro.
For now, the vessel will use the existing infrastructure and system capacity and load natural gas only during the months of lower demand. The ultimate goal is to invest in new infrastructure and operate year-round.
During the initial phase of the project, PAE, Pampa, Golar, and Harbour expect yearly exports to yield between US$750 million and US$800 million. For the second stage, they foresee exports jumping to US$1 billion annually and a year-round operation. This will imply additional investments to build a pipeline of over 600 kilometers from Vaca Muerta to the San Matías Gulf, between Sierra Grande and San Antonio Oeste.
According to PAE, during the construction phase, this venture will create over 600 new direct and indirect jobs, mostly in the area. The operational stage will generate close to 850 direct and indirect positions.
The project was submitted to the Incentive Regime for Large Investments (RIGI), which is a key factor for the competitiveness of the project in the global LNG market. The initiative was registered as a “Long Term Strategic Export Project,” according to the specification of the Ley Bases and regulatory decree 749/2024. According to PAE, operations are estimated to last at least 20 years.
According to a statement Harbour sent to Ámbito, the agreement signed last Friday with PAE and Golar was to acquire a 15% stake in the proposed development of the first LNG export project in Argentina. This will include the installation of a floating liquefaction vessel off the coast of Rio Negro, to produce LNG for export markets.
With this acquisition, done for an undisclosed sum, PAE currently holds 55% of Southern Energy; Pampa 20%; Harbour 15%, and Golar 10%.
