GLNG: Golar to deploy floating LNG vessel to Argentina in 20-year deal

Maritime LNG infrastructure firm Golar LNG has reached an agreement with Argentina’s Pan American Energy (PAE) for the 20-year deployment of a floating LNG (FLNG) vessel near its Vaca Muerte shale formation, Golar announced on July 5. 

The Vaca Muerta shale formation in the Neuquen Basin in Northern Patagonia is the world’s second largest shale play and the deployment of Golar’s FLNG Hilli will offer an outlet for natural gas reserves.

Golar’s FLNG Hilli boasts a production capacity of 2.45mn tonnes per year (tpy) and will give a net tariff equivalent to $2.6 mmBtu (million British thermal units) measured on 90% capacity utilisation under an additional commodity-linked pricing structure.

Under the terms of the deal, Golar also possesses the right to swap Hilli for another suitable FLNG vessel.