Tor Olav Trøim-led Golar LNG Limited has finalised a 20-year charter of its 3.5-mtpa MKII FLNG to Southern Energy S.A. in Argentina.

Golar said on Oct. 23 that all conditions precedent and customary closing conditions in connection with the 20-year charter of Golar’s 3.5 mtpa MKII FLNG to Southern Energy S.A. (SESA) in Argentina have been satisfied.

The company noted that the charter of the MKII FLNG solidifies $8bn of net earnings backlog over 20 years, equivalent to $400m in annual EBITDA to Golar, before commodity exposure and inflationary adjustments.

“In addition, the charter agreement includes attractive commodity exposure both in the FLNG commodity tariff component and through Golar’s 10% shareholding in SESA,” reads Golar’s statement.

The MKII FLNG will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to the FLNG Hilli.

As it is reported, the MKII FLNG is currently undergoing conversion at CIMC Raffles Shipyard in Yantai, China. The unit is on schedule for delivery by year end 2027, with operations expected to commence in 2028. The total conversion budget is approximately $2.2bn of which $1.0bn has been spent to date, all capital expenditures funded through equity.

According to Golar, the project has received all key governmental approvals, including an unrestricted 30-year LNG export authorization in Argentina, and qualification as Strategic Investment under the Large Investments Incentive Regime (RIGI).

Karl Fredrik Staubo, Golar’s chief executive officer, said: “Following today’s confirmation of the 20-year charter for the MKII FLNG in Argentina, each of Golar’s three existing FLNGs now holds 20 years of earnings visibility, representing a combined EBITDA backlog of $17 billion before attractive commodity exposure.

“We look forward to starting operations in Argentina and to continue the strong partnership with SESA and its shareholders. Now that our existing fleet is fully contracted for the next 20+ years, we will increase our focus on new FLNG growth opportunities.”