Pampa Energía, a leading energy company in Argentina, has announced its strategic partnership with Pan American Energy and Golar LNG to establish Southern Energy, a joint venture dedicated to developing a significant LNG export project. Pampa Energía will hold a 20% stake in Southern Energy and commit to supplying 22.2% of the natural gas volumes from its Neuquén Basin fields.

This collaboration aims to leverage Argentina's abundant natural gas reserves, particularly from the Vaca Muerta shale formation, to become a global player in the LNG market.

The project will be led by Pan American Energy and will facilitate the export of 11.5 million cubic meters of natural gas per day. With a projected investment of US$2.9 billion over the next decade, and an estimated total investment of US$7 billion throughout its lifecycle, the project involves the installation and operation of the Golar Hilli Episeyo liquefaction vessel in the San Matías Gulf.

The vessel boasts a production capacity of 2.45 million tonnes per year of LNG, equivalent to 11.5 million cubic meters per day of natural gas. This initiative will enable Argentina to enter the global LNG market and create new job opportunities, stimulating the development of the entire natural gas value chain.

Pampa Energía currently generates an average of 14.5 million cubic meters of natural gas daily from its Sierra Chata and El Mangrullo fields in Vaca Muerta, with production reaching a peak of 17 million cubic meters per day in the winter.

Gustavo Mariani, CEO and Vice President of Pampa Energía, emphasized the project's importance in positioning Argentina as a global LNG exporter. He highlighted the potential to enhance macroeconomic stability and increase foreign currency earnings through the export of domestic natural gas reserves.

Rodolfo Freyre, Vice President of Gas, Energy, and Business Development at Pan American Energy, underscored the competitiveness of Vaca Muerta's unconventional natural gas on a global scale. He noted that new markets, such as LNG, are essential for the continued growth of the region.

By joining forces with Pan American Energy and Golar LNG, Pampa Energía is playing a pivotal role in unlocking Argentina's vast natural gas resources and solidifying the country's position as a significant player in the global LNG market.

Pan American Energy Corp. is a mining exploration company that focuses on lithium. They aim to expand the lithium supply chain by acquiring, exploring, and developing mineral properties. By expanding the lithium supply chain, the company aims to contribute to the growing demand for lithium-ion batteries, particularly in the electric vehicle market.