Southern Energy Receives LNG Export, RIGI Approval in Argentina

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Southern Energy has received the Argentine government's approval to export liquefied natural gas (LNG) from 2027 to 2057. This marks the beginning of Argentina's LNG future and the success of Vaca Muerta's shale gas production.

Southern Energy is a consortium composed of five energy companies.

The project plans for the deployment of two floating LNG (FLNG) vessels, Hilli Episeyo and MKII, with a combined annual capacity of 6 million tons of LNG), equivalent to 27 million cubic meters of natural gas per day. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.

The vessels will be stationed at the San Matias Gulf in the Rio Negro province, and they will be supplied by a dedicated pipeline from Vaca Muerta to the coast.

FLNG Hilli Episeyo is expected to begin exports by late 2027, and MKII should be operational by 2028.

So far, the project has received the government's approval for the adhesión to the Incentive Regime for Large Investment (RIGI), which grants fiscal and legal incentives for large infrastructure projects in Argentina, for its phase 1, which includes investments of US$2.9 billion. However, the Southern Energy project could reach a total of US$ 7 billion in investments over its lifespan.

Luis Caputo, Argentina's economy minister, said on X that with the construction of Southern Energy, his nation could export US$2.5 billion worth of LNG per year over the next two decades.

The LNG export approval represents a key step for Argentina in its efforts to become a global LNG player and to continue exploiting from Vaca Muerta, the world's second-largest shale gas reservoir.

Besides the Southern Energy project, YPF (NYSE:YPF) (Buenos Ares, Argentina), the state company, has also announced plans to construct the Argentina LNG project, which could boost Argentina's LNG export capacity to 30 million tons per year. Click here for the project report.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).