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Argentina’s SESA Signs Eight-Year LNG Supply Deal With Germany’s SEFE Starting in 2027

The Berlin deal anchors a two-vessel FLNG project off Río Negro backed by more than $15 billion in investment.

Overview

  • SESA and SEFE signed a binding sales and purchase agreement in Berlin for 2 million tonnes per year of LNG over eight years, converting a December heads of agreement into a final contract.
  • Initial deliveries will come from the Hilli Episeyo FLNG unit beginning in late 2027, covering more than 80% of that vessel’s 2.45 mtpa capacity and over 30% of the planned two-ship 6 mtpa output.
  • The joint venture has taken investment decisions on the Hilli Episeyo and the Mark II FLNG, targeting offshore operations in Río Negro with total spending above $15 billion across two decades.
  • Sector and company figures indicate the SEFE contract could generate more than $7 billion, with SESA projecting over $20 billion in exports through 2035 and about 1,900 jobs during construction.
  • SEFE, a German state-owned energy supplier, calls the agreement a contribution to Europe’s energy security and says it expects to be the first German company to receive LNG cargoes from Argentina.