Argentina plans to export natural gas via a floating LNG vessel
Nov, 29, 2018 Posted by datamarnewsWeek 201848
Argentina plans to begin exporting liquefied natural gas (LNG) from a part of its huge Vaca Muerta shale gas field, via a floating LNG liquefaction (FLNG) vessel provided by Exmar. Operations are due to begin in the second quarter of 2019, with YPF (Argentina’s state-controlled oil company) having signed a 10-year contract with Exmar to deploy the FLNG at Bahia Blanca on the east coast. The vessel will produce 500,000 tons of LNG per annum, with eight shipments expected each year.
Supporting Sources:
http://www.kallanishenergy.com/2018/11/23/argentina-to-export-1st-lng-from-vaca-muerta-in-q2-2019/
Argentina to export 1st LNG from Vaca Muerta in Q2 2019 » Kallanish Energy News
Argentina will start producing its first liquefied natural gas (LNG) from the Vaca Muerta Shale play in the second quarter of 2019, with exports to commence soon after the project start-up, Kallanish Energy reports.
The Belgian shipping company specializing in liquefaction, EXMAR, said Wednesday it’s been awarded a 10-year contract with Argentine oil company YPF for the hiring of a barge-based liquefaction unit. The Caribbean FLNG will be redeployed as Tango FLNG to the Port of Bahia Blanca next year.
The barge will produce 500,000 tonnes per annum of LNG, with the companies projecting the export of eight cargoes annually over the 10-year period. The contract is a tolling agreement with the necessary permits and the infrastructure onshore confirmed as available, EXMAR said.
“The hire rate of the unit is partially based on a floating rate with an expected EBITDA of around $43.0 million per year based on the estimated production of the Tango FLNG with upside potential depending on the market environment,” EXMAR added.
The project is significant to Argentina, as it marks the country’s entry to the select club of global LNG exporting nations, the Belgian firm said. “Argentina will become a relevant and reliable LNG supplier for both regional and world markets,” it added.
YPF CEO Miguel Gutierrez said, in a joint statement, that 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 CEO Nicolas Saverys echoed Gutierrez’s comments, adding the agreement opens up new markets and opportunities for the fast-track monetization of 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” he added.
Argentina to Export First LNG in 2019 Featured
Argentina is due to begin exports of liquefied natural gas from a part of its vast Vaca Muerta shale gas resource next year through a floating LNG liquefaction (FLNG) vessel provided by Exmar, the Belgian shipping company said on Wednesday.
The country’s state-controlled oil company YPF signed a 10-year agreement with Exmar to deploy the barge-based FLNG, formerly known as the Caribbean FLNG, at Bahia Blanca on the east coast about 400 miles south of Buenos Aires.The operations, due to start in the second quarter of 2019, will introduce Argentina into the small club of around 20 countries exporting LNG while the FLNG will be only the world’s fourth and the smallest.
The port hosted South America’s first LNG import terminal, a floating storage and regasification unit (FSRU) provided by U.S. company Excelerate. However that FSRU, the Excelerate Exemplar, left the port on Oct 30, according to Refinitiv Eikon data.
Argentina will continue to have the ability to import LNG through the Excelerate Expedient FSRU moored in Escobar, close to Buenos Aires. The new import vessel will now be named Tango FLNG and is expected to ship up to eight cargoes a year.
“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,” YPF President Miguel Gutierrez said in the statement.
Vaca Muerta is similar to the shale gas deposits that have rejuvenated the U.S. energy industry. The Argentine play is one of the largest reserves of unconventional hydrocarbons on the planet, though much of its oil and gas remains untapped.
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