YPF Awards EXMAR Contract For Export Of First LNG From Argentina

Instant Max AI

(Exmar, 21.Nov.2018) — Belgium’s EXMAR NV and Argentina’s YPF signed a firm, ten-year agreement to deploy EXMAR’s barge-based floating LNG liquefaction unit (FLNG), currently known as Caribbean FLNG, to produce and export LNG from the Vaca Muerta formation located in the Neuquén Basin in Argentina.

The barge-based floating liquefaction unit Caribbean FLNG will be redeployed as Tango FLNG to the Port of Bahía Blanca in the second quarter of 2019 .

The project marks the entry of Argentina to the select club of global LNG exporting nations, with an initial plan to export 500,000 tons of LNG per year to overseas markets.

EXMAR’s FLNG barge will be named Tango FLNG and be deployed to the port of Bahia Blanca. This will mark the beginning of a close, joint commercial relationship that will transform the country’s energy matrix.

“[This agreement] opens up new markets and opportunities for the fast-track monetization of natural gas reserves along new routes of energy. We are confident that EXMAR’s experience in the region and unique expertise in liquefaction will support YPF’s ambition to become a significant LNG supplier,” commented Nicolas Saverys, EXMAR’s Chief Executive Officer.

“Thanks to the commercial relationship with EXMAR we are now able to add value to the resources extracted from Vaca Muerta, and take full advantage of the seasonal opportunity with Asian markets and our unique location to serve demand centers,”said YPF President Miguel Gutierrez.

The FLNG, which will be named Tango FLNG , is a floating unit with a liquefaction capacity of 500,000 tons of LNG per annum. This is a tolling agreement between both parties with the necessary permits and the infrastructure onshore confirmed as available.

Up to eight LNG cargoes per year will be produced over a ten-year period.

EXMAR’s Tango FLNG is the first niche scale, barge-based unit of it s kind creating unique value for its customer to produce LNG at competitive rates. Its arrival on site and start-up of operations are anticipated during the second quarter of 2019.

The hire rate of the unit is partially based on a floating rate with an expected EBITDA of around $43 million per year based on the estimated production of the Tango FLNG with upside potential depending on the market environment.

(Additional editing by Energy Analytics Institute)

***

#LatAmNRG

Previous post Venezuela’s Maduro Says $100/bbl Oil Is ‘Fair Price’
Next post Tecpetrol Reports Rise In Fortín de Piedra Shale Production

Leave a Reply

Your email address will not be published.