December 02, 2024 [Market Screener]- Pampa Energia S.A. announces the participation in the FLNG Project, led by Pan American Energy S.A. (“PAE”), for the liquefaction and export of liquified natural gas (“LNG”).

The FLNG Project involves deploying Golar LNG (“Golar”)’s floating liquefaction vessel, “Hilli Episeyo”, in the San Matías Gulf, Río Negro province, alongside the construction of supporting infrastructure. The vessel will have a production capacity of 2.45 million tons per year (“mtpa”) of LNG, equivalent to 11.5 million cubic meters (“mcm”) or 0.4 billion cubic feet (“bcf”) of natural gas per day. Operations are expected to begin in the second half of 2027.

Pampa will initially hold a 20% stake in Southern Energy S.A. (“SESA”), the entity established by PAE and Golar to undertake the Project, becoming its second-largest shareholder. During the FLNG Project’s initial stage, Pampa has committed to supplying up to 3 mcm or over 100 mcf of natural gas per day from its Neuquina Basin blocks, where it currently produces an annual average of over 13 mcm or 0.5 bcf per day, with peaks of 17 mcm or 0.6 bcf per day in winter.

With an estimated investment of US$2.9 billion over the next 10 years, the Project represents a strategic milestone to monetize Pampa’s Vaca Muerta reserves and position Argentina in the global LNG market. It is also expected to generate foreign exchange, create jobs, and stimulate the local supply chain.

SESA has also applied for the Incentive Regime for Large Investments (“RIGI”), as the FLNG Project meets the criteria outlined in the Ley Bases and Executive Order No. 749/24 to qualify as a “Long-Term Strategic Export Project.”

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