Golar LNG has informed that all conditions for the 20-year charter of its 3.5 million tonnes per annum (MTPA) MK II Floating Liquefied Natural Gas (FLNG) unit to Southern Energy S.A. (SESA) in Argentina have been satisfied.
The announcement confirms $8 billion in EBITDA backlog before commodity exposure and inflationary adjustments.
The milestone follows definitive agreements signed in May 2025 and a final investment decision announced (FID) in August. The long-term charter, valued at roughly $400 million in annual EBITDA for Golar, includes additional upside through commodity-linked exposure in the tariff component and a 10% equity stake in SESA.
The MK II FLNG will operate in the Gulf of San Matías, offshore Argentina, near Golar’s existing FLNG Hilli. The vessel, currently being converted at CIMC Raffles Shipyard in Yantai, China, is expected to be delivered by the end of 2027 and begin operations in 2028.
The conversion budget totals about $2.2 billion, with $1 billion already spent and fully funded through equity. The project has received key government approvals, including a 30-year LNG export license and designation as a Strategic Investment under Argentina’s Large Investments Incentive Regime (RIGI).
“Following today’s confirmation of the 20-year charter for the MK II FLNG in Argentina, each of Golar’s three existing FLNGs now holds 20 years of earnings visibility, representing a combined EBITDA backlog of $17 billion before attractive commodity exposure. We look forward to starting operations in Argentina and to continue the strong partnership with SESA and its shareholders,” said Karl Fredrik Staubo, CEO of Golar LNG..