YPF declares force majeure on Tango FLNG
YPF SA has given Exmar written notification of force majeure under the charter and services agreements between the two companies regarding the 500,000-tonne/year Tango floating LNG (FLNG) plant, stationed in Bahia Blanca, Argentina. YPF claimed that effects of the coronavirus (COVID-19) pandemic both worldwide and in Argentina have hindered its ability to perform its obligations under the agreements, including its ability to pay the invoices due for services performed since second-half March 2020.
Tango FLNG shipped its first commercial cargo in November 2019, with plans to ship as many as eight LNG cargoes per year over 10 years.
YPF has two LNG carriers on charter to ship Tango’s output, one from Exmar and one from Excelerate Energy LP.
According to Exmar’s first-quarter 2020 results, Tango FLNG contributed 36% of the company’s earnings before interest, taxes, depreciation, and amortization. Exmar considers the force majeure notice to be unlawful and said it is considering its best option to defend its interests. The company added that its current forecast liquidity is not at risk until end-2020.
Christopher E. Smith | Editor in Chief
Chris brings 32 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 20 of them in the midstream and transportation sectors.
