Buenos Aires, May 5, 2025. Pampa Energía S.A. (‘Pampa’ or the ‘Company’; NYSE: PAM; ByMA: PAMP) announces that the shareholders of Southern Energy S.A. (‘SESA’) have agreed to move forward with the FLNG Project by executing the final investment decision for a 20-year charter of the Hilli Episeyo floating liquefaction vessel (‘Hilli’), with a nameplate capacity of 2.45 million tons per annum (‘MTPA), as announced on November 29, 2024.
In addition, the consortium agreed to incorporate a second vessel, the MKII, also provided by Golar LNG, with a nameplate capacity of 3.5 MTPA and under a 20-year charter. Both vessels will be located in the San Matías Gulf, province of Río Negro, and will process and export up to 6 MTPA of liquefied natural gas (‘LNG’).
The Hilli is expected to begin operations in late 2027 or early 2028, followed by the MKII by the end of 2028.
SESA, the company established to develop this project, is owned by Pampa (20%), Pan American Energy
S.L. (‘PAE,’ 30%), YPF S.A. through its subsidiary Sur Inversiones Energéticas S.A.U. (‘SUR’, 25%), Wintershall DEA Argentina S.A. (‘Wintershall,’ 15%), and Golar FLNG Sub-Holding Company Limited (‘Golar Subholding,’ 10%).
To supply the vessels, SESA has signed 20-year gas sales agreements (‘GSA’) with Pampa, PAE, SUR, and Wintershall. Said vessels will require 27 million cubic meters of natural gas per day, of which Pampa will contribute up to 6 million cubic meters per day, representing an increase of over 40% from its current average production. A dedicated gas pipeline is also planned to be built between the province of Neuquén and the San Matías Gulf to ensure the year-round operation of both vessels.
The FLNG Project has already applied for the Incentive Regime for Large Investments (‘RIGI’) before the Ministry of Economy and was recently granted 30-year unrestricted LNG export authorization from the Secretariat of Energy.
The estimated investment amounts to US$7 billion over 20 years, making this initiative a strategic step to monetize Pampa’s Vaca Muerta reserves, position Argentina in the global LNG market, foster foreign currency inflows, create jobs, and develop local suppliers.
For more information, please contact:
Gustavo Mariani – CEO
Adolfo Zuberbühler – CFO
Lida Wang – Investor relations and sustainability officer – investor@pampa.com
Josefina Espinoza Paz – PR, press and marketing director – prensa@pampa.com
The Pampa Energía Building
Maipú 1, (C1084ABA), Buenos Aires, Argentina Phone: +54 (11) 4344 6000
