Argentina’s LNG export plans took a step forward with the approval in a public hearing of the MKII floating liquefaction unit (FLNG) to be installed at the port of San Antonio Este, Río Negro, as part of a plan led by Southern Energy, the consortium formed by Pan American Energy, Pampa Energía, Harbour Energy, and Golar LNG.
The MKII, currently under construction in China, will have a capacity of 3.5 million tonnes/year (tpy) and will operate alongside the 2.45-million tpy Hilli Episeyo, scheduled for startup in 2027. Together, the units will allow Argentina to reach 6 million tpy of LNG capacity by late 2028.
A dedicated pipeline from Vaca Muerta to the Gulf of San Matías to supply the units has been granted a 30-year LNG export permit.
In parallel, Argentina’s YPF is moving forward with its LNG development plan, signing preliminary agreements with ENI SpA and Shell plc for the project’s second and third phases. The memoranda of understanding are designed to optimize infrastructure and share investment, with final investment decisions (FIDs) expected in 2026. While also based on FLNGs, the projects differ from Southern Energy’s in terms of partners and execution timelines.
Meanwhile, ExxonMobil remains in talks to join as a potential LNG offtaker, but no definitive agreements have been signed.
With the provincial approval of MKII and YPF’s memoranda with ENI and Shell, Argentina is accelerating the creation of an LNG export hub on the coast of Río Negro. The strategy combines multi-billion-dollar private investment with the search for long-term contracts to monetize Vaca Muerta’s unconventional gas surplus.
