Southern Energya company owned by Pan American Energy and Golar LNG, submitted the application for membership Incentive Regime for Large Investments (RIGI) for the project to install a liquefied natural gas (LNG) liquefaction vessel in Río Negro.
According to what the company said in a statement sent to Energy Report, The initiative constitutes a “significant milestone” to position Argentina as an exporting country in the global LNG market from 2027.
How much will be invested in the PAE and Golar LNG export project?
The project foresees an estimated investment greater than US$1,650 million during the first phase(2025-2031), while in the second stage (2032-2035) it amounts to almost US$1,250 million. In this way, the total disbursements in the two stages will add up to around US$2.9 billion. However, over the 20 years of useful life, the total planned investment is almost US$7,000 million.
The LNG export project presented complies with the conditions specified in the Base Law and regulatory decree 749/2024 to be considered as ““Long-Term Strategic Export Project”.
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“In this sense, it will position Argentina as a new supplier in a global market where our country still does not have participation and will generate exports of products that are not currently exported in international markets, accessing new destinations of export”, they stressed from Pan American Energy (PAE).
How many jobs will the PAE and Golar LNG project generate?
The project will favor the creation of more than 600 new jobs direct and indirect, predominantly local originduring the construction phase. Meanwhile, in the operation stage, around 850 jobs directly and indirectly.
From PAE they estimate that there will be a high participation of local supplierswhich will contribute more than 50% of the goods and services required during the operation of the project. There will also be developed a active politician to develop local suppliers with the objective of promoting the generation of added value to the country.
What did Marcos Bulgheroni say about RIGI?
Marcos BulgheroniGroup CEO of PAEG, stated that “The RIGI made it possible to strengthen the regulatory framework, so that it is stable and promotes legal security for investments. All of this is essential to give clear signals to an industry that invests sustainably in the long term and for projects like ours to become a reality.”
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As indicated from PAE, The gas resources available in Argentina far exceed domestic demand and regional exports and, in turn, there will be a growing demand for LNG globally in the coming years. Therefore, the company considered, There is a favorable framework for the installation of natural gas liquefaction capacity in Argentina, which will enable the arrival of a value-added product to new regions, generating local economic activity, increasing exports and generating foreign currency.
“The project, being the first of its kind in the country, will allow progress in the learning curve of the LNG value chain, generating the confidence and experience necessary to develop larger scale projects,” they stressed.
PAE and Golar LNGthrough Southern Energyare in negotiations with gas producing companies so that they can join the joint venture.
PAE’s roadmap: look for partners and sell LNG all year round
As advanced Energy Report after the AOG Patagoniahe PAE project with the Norwegians from Golar will begin with LNG exports in 2027, so it will leave before the YPFand even before that of Tecpetrolwhich cut itself. The arrival of the liquefaction vessel “Hilli Episeyo”, which today is in Cameroon, to the San Matías Gulf is scheduled for the end of 2026.
The first stage involves a large investment to produce 2.4 million tons per year of LNG from October to March, using existing transportation infrastructure in those months when domestic demand drops. One of the main clients could be Brazil. But there are already talks with other countries to make firm contracts and also at spot prices.
PAE owns 90% of the new company, while the remaining 10% is owned by Golar. PAE wants to add partners to the project and seeks to share that 90% with other local producers, such as YPF, Pampa Energía or the British Harboramong others.
With the first stage of LNGthe Bulgheroni expect to generate exports of US$750/US$800 million annually. But they are already thinking about the second, which would imply an additional investment for the construction of a dedicated gas pipeline of more than 600 km direct from the heart of Vaca Muerta to the San Matías Gulfbetween the towns of Sierra Grande and San Antonio Oeste, with which exports could be generated that would exceed the US$1 billion a year, with LNG sales all year round.
Source: Ambito

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