Barge-based floating liquefaction unit Caribbean FLNG to be redeployed as Tango FLNG to the Port of Bahía Blanca in the second quarter of 2019.

EXMAR NV of Belgium (ERB: EXM) and YPF of Argentina (BCBA: YPFD) announce the signing of a firm, ten-year agreement to deploy EXMAR’s barge-based floating LNG liquefaction unit (FLNG) currently known as Caribbean FLNG to produce and export LNG from the Vaca Muerta source at the Neuquén Basin in Argentina.

YPF awards EXMAR a long-term contract to produce and export the first LNG from Argentina

The project marks the entry of Argentina to the select club of global LNG exporting nations, with an initial plan to export 500,000 tons of LNG per year to overseas markets.

EXMAR’s FLNG barge will be named Tango FLNG and be deployed to the port of Bahia Blanca. This will mark the beginning of a close, joint commercial relationship that will transform the country's energy matrix. Argentina will become a relevant and reliable LNG supplier for both regional and world markets.

“We are delighted to reach this agreement with YPF. It opens up new markets and opportunities for the fast-track monetization of natural gas reserves along new routes of energy. We are confident that EXMAR’s experience in the region and unique expertise in liquefaction will support YPF’s ambition to become a significant LNG supplier” commented Nicolas Saverys, EXMAR’s Chief Executive Officer.

“Thanks to the commercial relationship with EXMAR we are now able to add value to the resources extracted from Vaca Muerta, and take full advantage of the seasonal opportunity with Asian markets and our unique location to serve demand centers”, said Miguel Gutierrez, President of YPF.

This project confirms the relevance and demand for providing innovative floating LNG solutions to a growing market. The unique FLNG technology developed by EXMAR is the result of innovative leadership and more than 40 years of experience in the LNG and LPG industry.

More details about the project:

The FLNG, which will be named Tango FLNG, is a floating unit with a liquefaction capacity of 500,000 tons of LNG per annum. This is a tolling agreement between both parties with the necessary permits and the infrastructure onshore confirmed as available. Up to eight LNG cargoes per year will be produced over a ten-year period.

EXMAR’s Tango FLNG is the first niche scale, barge-based unit of its kind creating unique value for its customer to produce LNG at competitive rates. Its arrival on site and start-up of operations are anticipated during the second quarter of 2019. EXMAR’s many years of experience in LNG ship-to-ship transfers, storage and regasification at this same terminal with locally-trained colleagues will stand it in good stead for this new project.

The hire rate of the unit is partially based on a floating rate with an expected EBITDA of around USD 43.0 million per year based on the estimated production of the Tango FLNG with upside potential depending on the market environment.

Source: Exmar