The developers of Argentina's first large-scale floating LNG export project have secured $900m in project finance for a dedicated gas pipeline that will supply two FLNG units in the Gulf of San Matías.

The San Matías Pipeline consortium, which brings together Pan American Energy, YPF, Pampa Energía, Harbour Energy and Golar LNG, closed the syndicated financing on Friday. The transaction was structured by Citi, JP Morgan, Santander and Itaú.

The 472 km pipeline is a central element of a $1.3bn infrastructure programme connecting the Vaca Muerta shale region with the Río Negro coast. Vaca Muerta, located in the Neuquén Basin, is one of the largest shale gas and tight oil plays in the Americas, and the pipeline is part of broader efforts to link its output to export markets rather than relying solely on domestic consumption and pipeline deliveries to neighbouring countries. Once operational, the pipeline will have the capacity to transport approximately 27m cu m of gas per day to the Southern Energy liquefaction development. Construction is scheduled to begin this month and continue through mid-2028.

Under the development plan, Southern Energy intends to deploy Golar LNG's Hilli Episeyo floating liquefaction unit in 2027, followed by the MKII FLNG in 2028. Hilli Episeyo, a converted vessel that has operated offshore Cameroon since 2018, would be redeployed to Argentina, making it one of the most experienced floating liquefaction units in service. Together, the two units will provide around 6m tonnes per year of LNG export capacity, positioning Argentina to enter the global LNG market as it scales up hydrocarbon exports from Vaca Muerta.