Dec 3, 2025
Germany's SEFE is taking measures to secure more LNG from a South American supplier for Europe.
Germany's Securing Energy for Europe (SEFE) has initiated plans to expand its liquefied natural gas (LNG) capabilities by signing a multi-year LNG supply agreement with Argentina’s Southern Energy, aiming to enhance Europe’s energy security.
The agreement involves an eight-year supply arrangement, allowing SEFE to purchase up to two million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis, with deliveries expected to commence in late 2027. This arrangement is dependent on finalizing a definitive sales and purchase agreement (SPA), marking Argentina’s first long-term LNG supply contract once completed.
Frédéric Barnaud, SEFE's Chief Commercial Officer, stated: “Partnering with a South American supplier diversifies our portfolio geographically and bolsters Europe’s energy security. We are glad to assist Argentina in becoming a global LNG exporter, while also continuing our collaboration with the Hilli Episeyo team as it relocates from Cameroon to Argentina.”
Southern Energy is launching Argentina's inaugural large-scale LNG export project, which consists of two floating LNG terminals (FLNGs) with a total capacity of approximately six mtpa. The first FLNG, Hilli Episeyo, will produce 2.45 mtpa starting in late 2027, while the second, MK II, is set to contribute an additional 3.5 mtpa from late 2028.
Rodolfo Freyre, Chairman of Southern Energy, noted: “The agreement with SEFE marks Argentina’s first large-scale LNG sales contract and is a significant step towards the development of the Vaca Muerta gas resources. We are proud to take this initial step into the LNG market alongside a globally recognized and established partner.”
According to current plans, both FLNG units, chartered from Golar LNG, one of Southern Energy’s shareholders, will be positioned at Golfo San Matías in the Province of Río Negro, Argentina, for a 20-year duration.
SEFE has been actively involved in sourcing and delivering LNG across various locations while optimizing its expanding global portfolio, including managing intricate operations like ship-to-ship transfers and collaborations with FLNGs.
The initiative to acquire more LNG from Argentina follows SEFE’s multi-year supply agreement with ADNOC Gas and comes shortly after securing an LNG deal with Venture Global and a gas agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR).
The agreement involves an eight-year supply arrangement, allowing SEFE to purchase up to two million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis, with deliveries expected to commence in late 2027. This arrangement is dependent on finalizing a definitive sales and purchase agreement (SPA), marking Argentina’s first long-term LNG supply contract once completed.
Frédéric Barnaud, SEFE's Chief Commercial Officer, stated: “Partnering with a South American supplier diversifies our portfolio geographically and bolsters Europe’s energy security. We are glad to assist Argentina in becoming a global LNG exporter, while also continuing our collaboration with the Hilli Episeyo team as it relocates from Cameroon to Argentina.”
Southern Energy is launching Argentina's inaugural large-scale LNG export project, which consists of two floating LNG terminals (FLNGs) with a total capacity of approximately six mtpa. The first FLNG, Hilli Episeyo, will produce 2.45 mtpa starting in late 2027, while the second, MK II, is set to contribute an additional 3.5 mtpa from late 2028.
Rodolfo Freyre, Chairman of Southern Energy, noted: “The agreement with SEFE marks Argentina’s first large-scale LNG sales contract and is a significant step towards the development of the Vaca Muerta gas resources. We are proud to take this initial step into the LNG market alongside a globally recognized and established partner.”
According to current plans, both FLNG units, chartered from Golar LNG, one of Southern Energy’s shareholders, will be positioned at Golfo San Matías in the Province of Río Negro, Argentina, for a 20-year duration.
SEFE has been actively involved in sourcing and delivering LNG across various locations while optimizing its expanding global portfolio, including managing intricate operations like ship-to-ship transfers and collaborations with FLNGs.
The initiative to acquire more LNG from Argentina follows SEFE’s multi-year supply agreement with ADNOC Gas and comes shortly after securing an LNG deal with Venture Global and a gas agreement with the State Oil Company of the Republic of Azerbaijan (SOCAR).