Coast is clear for Golar’s 20-year FLNG assignment in Argentina

October 23, 2025, by Melisa Cavcic

Golar Hilli Corporation, a subsidiary of the Bermuda-headquartered owner and operator of liquefied natural gas (LNG) midstream infrastructure Golar LNG, has received the all-systems-go signal for a two-decade-long charter of its floating LNG (FLNG) unit at Argentina’s LNG project on the South American country’s Atlantic coast.

FLNG MKII design with 3.5 mtpa; Source: Golar LNG

After Golar LNG shed light on a 20-year re-deployment charter for the FLNG Hilli Episeyo, known as the FLNG Hilli, the company hired Seatrium to handle the upgrading of the unit, which will be deployed off the coast of Argentina and chartered to Southern Energy S.A. (SESA), a company formed to enable LNG exports from the South American country.

The Bermuda-based firm also signed definitive agreements for a 20-year charter for the MKII FLNG with SESA, owned by a consortium of leading Argentinian gas producers, including Pan American Energy (30%), YPF (25%), Pampa Energia (20%), and Harbour Energy (15%), as well as Golar (10%).

The company has now confirmed that all conditions precedent and customary closing conditions in connection with the 20-year charter of the 3.5 mtpa MKII FLNG to Southern Energy have been satisfied, following the execution of definitive agreements announced in May 2025, and the final investment decision disclosed in August 2025.

Karl Fredrik Staubo, Golar’s CEO, 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 $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.”

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The Argentina LNG project, said to be worth $50 billion, is expected to benefit from significant operational efficiencies and synergies from two FLNGs in the same area. The charter of the MKII FLNG is perceived to solidify $8 billion of net earnings backlog over 20 years, equivalent to $400 million in annual EBITDA to Golar, before commodity exposure and inflationary adjustments.

The Bermuda-based firm claims that this deal also entails attractive commodity exposure both in the FLNG commodity tariff component and through the company’s 10% shareholding in SESA. The unit will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to the FLNG Hilli.

“The project has received all key governmental approvals, including an unrestricted 30-year LNG export authorization in Argentina, and qualification as a Strategic Investment under the Large Investments Incentive Regime (RIGI),” emphasized Golar.

With a nameplate capacity of 3.5 mtpa, the MKII FLNG, which is currently undergoing conversion at CIMC Raffles Shipyard in China’s Yantai, is on schedule for delivery by the end of 2027, with operations expected to begin in 2028. Golar highlights that the total conversion budget is approximately $2.2 billion, of which $1 billion has already been spent, with all capital expenditures funded through equity.

“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 monetization solutions,” underlined Staubo.