Golar: All conditions met for second Argentina FLNG
Published by Jessica Casey,
Editor
LNG Industry,
Golar LNG Ltd has announced that all conditions precedent and customary closing conditions in connection with the 20-year charter of Golar’s 3.5 million tpy MKII floating LNG (FLNG) to Southern Energy S.A. (SESA) in Argentina have been satisfied. This milestone follows the execution of definitive agreements announced on 2 May 2025, and the final investment decision announced on 6 August 2025.
The 20-year charter of the MKII FLNG solidifies US$8 billion of net earnings backlog over 20 years, equivalent to US$400 million in annual EBITDA to Golar, before commodity exposure and inflationary adjustments. In addition, the charter agreement includes attractive commodity exposure both in the FLNG commodity tariff component and through Golar’s 10% shareholding in SESA. The MKII FLNG will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to the FLNG Hilli.
The MKII FLNG, with a nameplate capacity of 3.5 million tpy, is currently undergoing conversion at CIMC Raffles Shipyard in Yantai, China. The unit is on schedule for delivery by year end 2027, with operations expected to commence in 2028. The total conversion budget is approximately US$2.2 billion of which US$1 billion has been spent to date, all CAPEX funded through equity.
The project has received all key governmental approvals, including an unrestricted 30-year LNG export authorisation in Argentina, and qualification as Strategic Investment under the Large Investments Incentive Regime (RIGI).
Golar’s CEO, Karl Fredrik Staubo commented: “Following today’s confirmation of the 20-year charter for the MKII FLNG in Argentina, each of Golar’s three existing FLNGs now holds 20 years of earnings visibility, representing a combined EBITDA backlog of US$17 billion before attractive commodity exposure. We look forward to starting operations in Argentina and to continue the strong partnership with SESA and its shareholders.
“Now that our existing fleet is fully contracted for the next 20+ years, we will increase our focus on new FLNG growth opportunities. Golar’s position as the only proven provider of FLNG as a service enables us to drive value for all stakeholders through attractive gas monetisation solutions.”
Read the article online at: https://www.lngindustry.com/floating-lng/23102025/golar-all-conditions-met-for-second-argentina-flng/
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