Harbour Energy plc and its partners have taken the final investment decision for the Southern Energy floating liquefied natural gas (FLNG) export project in Argentina.
CAPEX
The company produces in the offshore Cuenca Marina Austral (CMA-1) concession in the Tierra del Fuego province, and the onshore Aguada Pichana Este and San Roque concessions in the Neuquén basin.
Harbour has a 15% interest in Southern Energy SA which aims to develop a 2.45 million tonnes per annum FLNG export project.
Upstream partners, including Pan American Energy, YPF, Pampa Energia and Golar LNG, will supply the natural gas to the project.
The FLNG project involves deploying two of Golar LNG’s FLNG vessels – the Hilli Episeyo and MK II – off the coast of the Rio Negro province.
Production from the Hili Episeyo is targeted for the end of 2027 with the MK II expected to start operations at the end of 2028.
Harbour said that the expected processing and export capacity is in the region of six mtpa LNG, equivalent to 27 million cubic metres per day (or one billion cubic feet per day) of natural gas.
The company’s anticipated capital expenditure to the point of commercial operations is $100m.
Managing director of Harbour’s Argentina business unit, Martin Rueda, added: “Taking final investment decision on Southern Energy marks a significant milestone for Harbour Energy, providing the opportunity to deliver value from our extensive resource position in Argentina.”