Southern Energy Expects to Close $1.3 Billion LNG Financing

Rodolfo Freyre, CEO of Southern Energy, confirmed on August 24 that the consortium expects to close in the coming weeks financing of between US$1.2 billion and US$1.3 billion for the pipeline connecting Vaca Muerta with the Gulf of San Matías, in Río Negro. The first liquefied natural gas (LNG) liquefaction vessel will arrive in June 2027, Bloomberg Línea reported.

Southern Energy, a consortium comprising Pan American Energy (PAE), YPF, Pampa Energía, Harbour Energy, and Golar LNG, is building the 471-kilometer pipeline between Tratayén, in Neuquén, and the Río Negro coast, with initial capacity of 27 million cubic meters per day, according to Shale24. The pipeline entered Argentina's Large Investment Incentive Scheme (RIGI) and holds export permits for 30 years. The project, featuring two liquefaction vessels moored roughly five kilometers offshore, will require more than US$15 billion in investment and projects exports of US$20 billion, according to Oil & Gas Journal. For the region, Argentina's entry diversifies an LNG supply map dominated by the U.S. Gulf Coast basin and opens a capital corridor between North America and the Southern Cone.

At full capacity, the project will require gas volumes equivalent to roughly 20% of Argentina's current consumption. The first vessel, which previously operated in Cameroon, will undergo comprehensive maintenance in Singapore before sailing to Río Negro; the second will join in 2028, and together they will deliver 6 million tonnes per year of LNG, approximately 1.5% of a global market estimated at around 420 million tonnes, according to figures cited by Freyre. Southern Energy has already committed 2 of the 6 million tonnes to Germany's SEFE under an eight-year contract signed in March and valued at approximately US$7 billion, and is seeking to place remaining capacity through a mix of medium-term contracts and spot market sales.

The next milestone will be the financial close of the pipeline and the signing of new contracts, which the consortium expects within the current semester or in early 2027. In parallel, Argentina LNG, led by YPF, is advancing with 12 million additional tonnes projected, a second front that will define the future scale of Argentine LNG.

This article was written with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.