The consortium comprises Pan American Energy with 30%, YPF at 25%, Pampa Energía holding 20%, Harbour Energy with 15% and Golar LNG at 10%. Rodolfo Freyre was appointed CEO earlier this year as the project entered its accelerated construction phase. Total investment across the two-decade operational period is projected to exceed USD 15 billion, covering the full value chain from production to export.
The technical configuration relies on two floating liquefaction units. The Hilli Episeyo, currently operating offshore Cameroon, will be relocated to the San Matías Gulf with 2.45 million tonnes annual capacity. A second vessel, FLNG MK II, will increase combined system capacity to 6 million tonnes annually, equivalent to 27 million cubic meters of daily gas throughput. In November 2025, the MV Billion Star delivered approximately 10,000 tonnes of steel piping to San Antonio Este for onshore and offshore pipeline construction.
Southern Energy finalized an eight-year supply contract with German state energy company SEFE in February 2026 for 2 million tonnes per year beginning late 2027. The agreement represents over 80% of the Hilli Episeyo’s operational capacity and exceeds 30% of the total two-vessel system capacity. The contract value could surpass USD 7 billion over its term depending on international gas price movements.
The dedicated pipeline from Vaca Muerta consists of 473 kilometers of 36-inch diameter pipe capable of transporting 28 million cubic meters daily. The 29-kilometer Neuquén section between Tratayén and the provincial border received environmental impact study approval following public hearings in April 2026. Construction timelines align with the phased commissioning of both liquefaction vessels, though initial operations can utilize existing pipeline infrastructure before the dedicated line enters service in April 2028.
Neuquén province secured two investment bonus agreements with YPF tied to project milestones. The first tranche of USD 150 million activated upon exploitation concession approval, with infrastructure projects now in pre-engineering and planning stages. A second USD 175 million bonus depends on federal regulatory framework consolidation and certification under Argentina’s RIGI large investment incentive regime, expected by late 2026 or early 2027.
This article was curated and published as part of our South American energy market coverage.
