EXMAR and YPF have signed a 10-year agreement under which EXMAR’s barge-based floating LNG liquefaction unit (FLNG), Caribbean FLNG, will be deployed to produce and export LNG from the Vaca Muerta source at the Neuquén Basin in Argentina.
With this project, Argentina enters 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, to be named Tango FLNG, will be deployed to the port of Bahia Blanca. The joint commercial relationship is expected to transform Argentina into a reliable LNG supplier for regional and world markets.
Up to eight LNG cargoes will be produced per year over a 10-year period under the tolling agreement between both parties.
The Tango FLNG is the first barge-based unit of its kind that enables its customer to produce LNG at competitive rates. It is expected to arrive on site and begin operations during the second quarter of 2019.
The hire rate of the unit is partly based on a floating rate with an expected EBITDA of $43m per year depending on the estimated production of the Tango FLNG.
EXMAR CEO Nicolas Saverys said: “We are delighted to reach this agreement with YPF. It 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.”
YPF president Miguel Gutierrez said: “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.”
EXMAR provides floating solutions for the operation, transportation and transformation of gas. It is one of the world’s
largest operators of floating regasification units and manages 11 Floating Storage Regasification Units (FSRUs).
YPF is the main energy company in Argentina and producer of non-conventional resources.