Pan American Energy is actively seeking to establish contracts with Asian customers for LNG produced by a floating project in Argentina, reported Reuters, citing the company’s vice-president Rodolfo Freyre.
In July this year, bp’s subsidiary Pan American Energy and marine infrastructure company Golar LNG signed a contract to deploy a vessel that will produce LNG off Argentina’s coast, with operations expected to commence in mid-2027.
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Golar’s floating LNG (FLNG) vessel Hilli, which has a capacity of 2.45 million tonnes per annum (mtpa), will be repurposed for this project after its current contract in Cameroon concludes in 2026, according to Freyre.
This initiative is expected to kick-start Argentina’s LNG exports, potentially making the country a new player in the global LNG market.
“We saw this opportunity that Golar had… so we started working hard with them. And we actually acted pretty quickly to try to sign a contract for a 20-year deal, expecting to have LNG production maybe by 2027,” Freyre said at the GasTech conference.
As per company sources, Pan American Energy has already initiated discussions with potential LNG buyers from several Asian countries during meetings in Houston this week.
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By GlobalDataMeanwhile, YPF, Pan American Energy’s rival producer in Argentina, is also actively pursuing LNG contracts, with a delegation having visited India last month to negotiate terms, said YPF’s CEO.
Several oil and gas producers including YPF, Petronas, Tecpetrol and Pan American, are advancing three projects aimed at transforming Argentina into an LNG exporter.
These projects, which capitalise on the country’s position atop one of the world’s largest shale gas reserves, are projected to require more than $60bn (57.73trn pesos) in total investment.
The momentum for these projects is further bolstered by new regulations proposed by President Javier Milei’s administration.
These regulations are designed to encourage large investments, particularly in the LNG development sector, and are expected to guarantee stable LNG export conditions for up to 30 years, mitigating the risk of policy changes that could hinder progress, added Freyre.
In a separate development, Vista Energy’s CEO, Miguel Galuccio, announced plans earlier this month to invest approximately $1.1bn in expanding operations in Argentina’s Vaca Muerta shale formation this year.
