German SEFE signs 2 Mt/year LNG import deal with Southern Energy (Argentina)

The German energy company SEFE and the Argentinian company Southern Energy have signed a Heads of Agreement (HoA) for an eight-year LNG supply deal of up to 2 Mt/year of LNG on a FOB basis (SEFE press release, 01/12/2025). The deal represents the first large-scale LNG sales agreement for Argentina, with deliveries scheduled to begin in late 2027. 

Southern Energy is a JV between Argentina’s state-owned YPF, Pan American Energy (PAE), Pampa Energía, Harbour Energy and Golar LNG. The consortium aims to exploit gas from Vaca Muerta, one of the world's largest unconventional hydrocarbon deposits, with estimated gas reserves of around 8,700 bcm and oil reserves at 16.2 Gbl. Southern Energy will operate two floating LNG terminals (FLNGs) with a combined capacity of 6 Mt/year, the 2.45 Mt/year Hilli Episeyo FLNG from the end of 2027, and the 3.5 Mt/year MK II FLNG from late 2028.