Argentina Moves Toward First LNG Exports with SEFE Supply Agreement

Germany’s SEFE has signed a Heads of Agreement with Argentina’s Southern Energy for an eight-year LNG supply deal starting in 2027, marking Argentina’s first long-term LNG export contract and advancing the country’s entry into the global LNG market.

(P&GJ) — Germany’s SEFE Securing Energy for Europe has signed a Heads of Agreement (HoA) with Argentina’s Southern Energy for the long-term supply of liquefied natural gas (LNG), marking Argentina’s first-ever long-term LNG export contract.

Under the preliminary deal, SEFE will purchase up to 2 million tonnes per year (MMtpy) of LNG over an eight-year period, with deliveries expected to begin in late 2027, subject to the finalization of a sales and purchase agreement. The agreement represents roughly one-third of Southern Energy’s planned future production, the companies said in a joint statement.

Southern Energy, founded in 2024, is developing Argentina’s first large-scale LNG export venture, which includes two floating LNG (FLNG) terminals with a combined capacity of about 6 MMtpy. The first FLNG, Hilli Episeyo, will produce 2.45 MMtpy from the end of 2027, while MK II will add 3.5 MMtpy from late 2028. Both units, chartered from Golar LNG, will operate at Golfo San Matías in Argentina’s Río Negro province under a 20-year deployment term.

“This is SEFE’s first LNG partnership with a South American supplier,” said Frédéric Barnaud, SEFE’s Chief Commercial Officer. “It not only contributes to the geographic diversification of our portfolio, but also strengthens Europe’s energy security. We are pleased to support Argentina on its path to becoming a global LNG exporter.”

Rodolfo Freyre, Chairman of Southern Energy, said the deal marks a “key milestone for the future development of the Vaca Muerta gas resources,” adding: “We’re proud to take this first step into the LNG market with a globally respected and established counterpart on our side.”

SEFE, owned by the German government, is one of Europe’s largest gas and power suppliers, delivering around 200 TWh annually and actively expanding its LNG and hydrogen portfolios.