Argentina's Pampa Energia joins LNG export project

Pampa Energia, a subsidiary of Argentina's Pampa Energia, announced on Friday that it had joined Pan American Energy (PAE) and Golar in a joint project to export liquefied gas from the South American country.

Pampa Energia announced that it will own a 20% stake of Southern Energy, a joint venture between Pan American Energy and Golar to produce LNG.

In a press release, Pampa Energia's CEO Gustavo Mariani stated that "we consider it a very significant project for the country to be a world-exporter of liquefied gas."

The project will require $2.9 billion in investment over the next ten years to achieve its goal of exporting 11.5 million cubic metres of LNG each day.

Pampa Energia has committed to supplying 22,2% of these volumes from its fields located in the Neuquen Basin, which is home to the massive Vaca Muerta shale.

According to a comment made by Horacio Martin, the head of Argentine energy company YPF on LinkedIn, YPF will also be joining the export project.

Marin said in a blog post that "we are joining this initiative, which marks a landmark in our country's industry of energy and represents a step forward to our Argentina LNG Project." (Reporting by Eliana Raszewski; Editing by Kylie Madry)

(source: Reuters)