Exmar’s Tango FLNG Sets Sail for Argentina
- Business & Finance
Exmar’s floating liquefaction unit (FLNG), to be renamed Tango FLNG, has left China and is headed to Bahia Blanca, Argentina, to start its liquefaction operations.
Tango FLNG’s voyage to Argentina is expected to take approximately 45 days. The vessel was hired by Argentina-based engineering firm YPF under a ten-year agreement, and it is expected to start up LNG production in the second quarter of 2019.
Under the deal, Exmar’s FLNG barge will produce and export LNG from the Vaca Muerta source at the Neuquén Basin in Argentina. The project marks the country’s entry to the club of global LNG exporting nations, with an initial plan to export 500,000 tons of LNG per year to overseas markets.
Up to eight LNG cargoes per year are expected to be produced over the ten-year period, Belgian owner and operator of gas carriers said.
Tango FLNG is designed for a liquefaction capacity of about 0.5 million tons of LNG per year.
Exmar disclosed earlier that the hire rate of Tango FLNG is partially based on a floating rate with an expected EBITDA of around USD 43 million per year based on the estimated production of the Tango FLNG with upside potential depending on the market environment.