Exmar’s floating liquefaction unit (FLNG), renamed Tango FLNG, has left China and is headed to Bahia Blanca, Argentina, to start its liquefaction operations.
Tango FLNG’s voyage to Argentina is expected to take approximately 45 days. The vessel was hired by Argentina-based gas & oil company YPF under a ten-year agreement, and it is expected to start up LNG production in the second quarter of 2019. Tango FLNG is designed for a liquefaction capacity of about 0.5 million tons of LNG per year and is to play a central role in YPF’s efforts to export the Vaca Muerta gas reserves to the international markets. The project marks the country’s entry to the club of global LNG exporting nations,
Exmar disclosed earlier that the hire rate of Tango FLNG is partially based on a floating rate with an expected EBITDA of around USD 43 million per year based on the estimated production of the Tango FLNG with upside potential depending on the market environment.