The company Southern Energy SA (SESA) signed a sale and purchase agreement with the German firm SEFE (Securing Energy for Europe) for the export of 2 million tons of LNG per year over an 8-year period, with deliveries set to begin in late 2027.
This is the first long-term LNG export agreement signed by Argentina, positioning the country as a new strategic supplier on the global energy map.
A step forward for Europe’s energy security
SEFE, the German state-owned energy company, highlighted the importance of the agreement within its supply source diversification strategy. Frédéric Barnaud, the firm’s Chief Commercial Officer, noted that “SESA is the ideal partner to expand our portfolio into South America,” emphasizing that the deal was finalized in less than 4 months following the preliminary agreement signed in 2023.
With this move, SEFE becomes the first long-term European buyer of Argentine LNG, reinforcing its role as one of the continent’s largest gas and electricity suppliers.
Argentina enters the global LNG market
For Southern Energy and the Argentine energy sector, the contract represents a gateway to the global trade of liquefied natural gas.
The agreement with SEFE is significant for two reasons: on one hand, it consolidates Argentina’s position as a new and strategic international LNG supplier, contributing to the diversification of global supply sources; on the other, it represents a key contribution to strengthening Europe’s energy security.
Rodolfo Freyre, President of SESA.
The agreement also reinforces the potential for developing LNG-related infrastructure in the country, especially in regions like Vaca Muerta, one of the world’s largest unconventional reserves.
SEFE, a key player in the energy transition
SEFE operates across the entire energy value chain and serves more than 50,000 customers in Europe. The company is committed to a combined strategy of energy security and decarbonization, investing in clean energy and driving the hydrogen ecosystem.
The agreement was concluded under FOB (Free on Board) terms, meaning Southern Energy will be responsible for delivering the LNG onto vessels from its export terminals, which are still under development.
Future projections
With deliveries scheduled for 2027, this contract is a commercial and geopolitical milestone for both Argentina and Germany. Argentina formally joins the club of LNG-exporting nations, while Europe continues to diversify its supply sources following the energy crisis caused by the war in Ukraine.
The alliance between SEFE and Southern Energy lays the groundwork for future energy cooperation opportunities and expands Latin America’s presence in the global gas market.
Source: SEFE