Argentina’s first FLNG project reaches FID

BUENOS AIRES, May 5, 2025 – Harbour Energy and its partners have taken final investment decision on the Southern Energy FLNG export project offshore Argentina’s Río Negro province, the company said on Friday.

Harbour holds a 15% stake in the project, which will deploy two of Golar LNG’s vessels – the Hilli Episeyo and MK II – with a combined export capacity of around six million tonnes per year of LNG, equivalent to 27 million cubic metres per day of natural gas. The Hilli Episeyo is expected to begin production around year-end 2027, while the MK II unit is set to start up in late 2028.

The project is being developed by Southern Energy SA (SESA), a joint venture established in 2024 to build LNG export capacity from Argentina. Pan American Energy holds the largest interest in the JV at 30%, followed by YPF with 25%, Pampa Energía with 20%, Harbour Energy with 15% and Golar LNG with 10%.

Harbour’s capex through to the start of commercial operations is projected at around USD 100 million. The project will be supplied with gas from Argentina’s onshore Vaca Muerta formation, one of the largest shale gas reserves globally.

The Southern Energy project has secured incentives under the country’s recently enacted RIGI legislation, which includes dollarisation of revenues beginning three years after production start.

“Taking final investment decision on Southern Energy marks a significant milestone for Harbour Energy, providing the opportunity to deliver value from our extensive resource position in Argentina” managing director of Harbour’s Argentina business unit Martin Rueda said.

“As the country’s first LNG project under the RIGI, it also marks an important milestone in supporting Argentina’s ambition to become a material exporter of natural gas. We look forward to working together with our partners and stakeholders to safely and efficiently deliver this project,”

Harbour Energy is an independent oil and gas company with a portfolio spanning the UK, Indonesia, Vietnam, Mexico and Norway. Its operations include exploration, development and production of hydrocarbons, with a focus on natural gas and low-carbon energy transition initiatives.

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