Argentina is set to become a key supplier of liquefied natural gas (LNG) to Europe following a landmark framework agreement between Southern Energy (SESA), a consortium of Pan American Energy (PAE), YPF, Pampa Energía, Harbour Energy, and Golar LNG and Securing Energy for Europe (SEFE), a German federal government-backed company.
The deal covers the annual sale of two million tons of LNG over eight years, representing a major portion of the output from SESA’s first export vessel, the Hilli Episeyo, scheduled to begin operations in September 2027.
The agreement carries multiple strategic benefits. For Argentina, it promises a stable source of hard currency, potentially exceeding US$7 billion depending on global gas prices, while accelerating the country’s seaborne LNG exports. For Europe, the deal enhances energy diversification and security, particularly in the context of disruptions caused by geopolitical tensions in Eastern Europe.
Under the agreement, Europe will consume over 80 percent of the Hilli Episeyo’s annual capacity, amounting to more than 30 percent of the combined output from the two vessels planned. The deal underscores Argentina’s growing role in global energy markets while helping European nations reduce reliance on unstable sources, marking a historic milestone in international LNG trade.
