Under the agreement, SEFE will purchase two million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis, with deliveries scheduled to begin in late 2027, SEFE said on Wednesday.
The SPA follows the heads of agreement concluded in Argentina last year and marks the country’s first long-term LNG export contract, it said.
These volumes represent one third of Southern Energy’s projected annual LNG output.
“Thanks to our shared determination and focus, we’ve moved from a heads of agreement to a fully-fledged sales and purchase agreement in just over three months,” Frederic Barnaud, CCO of SEFE, said.
“This rapid progress shows that SESA is the right partner for us to expand our portfolio into South America and thereby strengthen Europe’s energy security. With deliveries starting already in 2027, we’re not only the first German energy company to offtake cargoes from Argentina, but also the country’s first long-term LNG customer globally,” he said.
Rodolfo Freyre, chairman of SESA, added that the agreement with SEFE is “significant for two key reasons: on the one hand, it confirms Argentina’s positioning as a new and strategic international LNG supplier, contributing to the diversification of global supply sources; on the other hand, it represents a key contribution to strengthening Europe’s energy security.”
Two FLNGs
SEFE already offtakes LNG from Golar LNG’s Hilli Episeyo, which is located in Cameroon and will be relocated to Argentina in 2027.
Southern Energy is launching Argentina’s first large-scale LNG export venture, comprising two floating LNG terminals (FLNGs) with a combined capacity of about six mtpa.
The first FLNG, Hilli Episeyo, will produce 2.45 mtpa from the end of 2027, while the second, MK II, will add 3.5 mtpa from late 2028.
Both FLNG units, chartered by Southern Energy from Golar LNG, one of its shareholders, will be deployed at Golfo San Matías, Province of Río Negro, Argentina, for a 20-year term.
Floating LNG player Golar LNG announced in October that all conditions precedent and customary closing conditions in connection with the 20-year charter of its 3.5 mtpa MKII FLNG to Southern Energy have been satisfied.
This followed the execution of definitive agreements announced in May and the final investment decision announced on August 6, 2025.
Southern Energy’s shareholders comprise Pan American Energy with a 30 percent stake, YPF with 25 percent, Pampa Energia with 20 percent, Harbour Energy with 15 percent, while Golar LNG has a 10 percent stake.
