Golar Hilli Corporation, a subsidiary of the Bermuda-headquartered owner and operator of liquefied natural gas (LNG) midstream infrastructure Golar LNG, has put Seatrium, a Singapore-headquartered offshore, maritime, and energy solutions provider, in charge of refurbishing its floating liquefied natural gas (FLNG) unit before it embarks on its multi-year assignment at Argentina’s LNG project on the South American country’s Atlantic coast.
Months after Golar LNG confirmed the fulfillment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo, known as the FLNG Hilli , the firm has picked Seatrium to handle the upgrading of the unit, which will be deployed off the coast of Argentina and chartered to Southern Energy S.A. (SESA) , a company formed to enable LNG exports from Argentina.
Marlin Khiew , Executive Vice President of Energy (Americas) at Seatrium, commented: “We are honoured to be entrusted once again by Golar with this FLNG upgrading contract. FLNG Hilli Episeyo is a testament to the strong track record of the projects we have delivered to Golar over the years and reflects their confidence in Seatrium as a partner in the development, conversion and upgrading of high-quality, sustainable, and robust production units.”
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The scope of work for the FLNG, which is scheduled to enter the yard in the third quarter of 2026, entails technical modifications, including engineering and procurement of long-lead items, repair and life extension, and winterization of the vessel, as well as the installation of a new soft-yoke mooring system.
Upon completion, the FLNG Hilli Episeyo will be redeployed at a large-scale upstream and midstream integrated gas development in the Gulf of San Matias, situated in the Rio Negro province offshore Argentina.
The unit, which will be tasked with liquifying gas from the Vaca Muerta Shale formation onshore in Neuquen province for 20 years, has a nameplate capacity of 2.45 MMt/year. This vessel is set to recommence operations in 2027.
The FLNG’s upgrade is seen as part of a broader suite of solutions developed by Seatrium to address the industry’s focus on energy transition, with LNG widely regarded as a transition fuel. The Singapore-based firm converted and delivered the FLNG Hilli Episeyo in 2017, followed by the FLNG Gimi in 2023.
Golar LNG also signed definitive agreements for a 20-year charter for the MKII FLNG with SESA, owned by a consortium of leading Argentinian gas producers, including Pan American Energy (30%), YPF (25%), Pampa Energia (20%), and Harbour Energy (15%), as well as Golar (10%).
As a result, the Bermuda-based player secured 20-year charter agreements for 5.95 million tons per year (mtpa) nameplate capacity in Argentina at one of the world’s largest FLNG development projects, thanks to commercial terms for the FLNG Hilli with a nameplate capacity of 2.45 mtpa and the MKII FLNG with a nameplate capacity of 3.5 mtpa.
While the FLNG Hilli will initially utilize spare volumes from the existing pipeline network, SESA intends to facilitate a dedicated pipeline to be constructed from Vaca Muerta to the Gulf of San Matias to serve gas supply to the FLNGs.
The Argentina LNG project, estimated to be worth $50 billion, is forecast to benefit from significant operational efficiencies and synergies from two FLNGs in the same area.