Wedoany.com Report-Dec.2, Argentina's Southern Energy has concluded a long-term liquefied natural gas (LNG) supply agreement valued at $7 billion with Germany's Securing Energy for Europe (SEFE), according to a statement made on Monday by Horacio Marin, Chief Executive Officer of YPF.

YPF CEO Horacio Marin speaks at the Petroleum Club of Houston during CERAWeek in Houston, Texas, U.S., March 13, 2025.

Under the terms of the contract, Southern Energy will deliver 2 million metric tonnes of LNG annually to SEFE over an eight-year period. The agreement marks one of the largest LNG export commitments from Argentina in recent years and supports the development of the country's substantial natural gas resources in the Vaca Muerta basin.

Horacio Marin announced the deal through a post on social media, stating: "The agreement covers the sale of 2 million metric tons of LNG per year for eight years."

The partnership between Southern Energy — a joint venture involving YPF and international partners — and SEFE reflects growing cooperation in the global LNG market. The volumes will be sourced from planned liquefaction facilities in southern Argentina, which are currently under development to transform the country into a significant exporter of LNG.

This transaction is expected to provide SEFE with a reliable supply of LNG to meet European energy requirements, while offering Argentina a stable revenue stream and supporting investment in upstream and midstream infrastructure. The deal also aligns with broader efforts to monetise Argentina's vast shale gas reserves and expand its presence in international energy markets.

Industry sources indicate that the agreement includes competitive pricing mechanisms linked to global benchmarks, ensuring flexibility for both parties amid fluctuating market conditions. Deliveries are scheduled to commence once the associated export terminal reaches commercial operation, targeted within the coming years.

The signing of this contract follows a series of strategic initiatives by YPF and its partners to accelerate the development of LNG export capacity on the Atlantic coast. These projects involve the construction of floating and onshore liquefaction plants capable of processing natural gas from Vaca Muerta into LNG for overseas shipment.

The $7 billion deal underscores the increasing importance of South American supply sources in the global LNG landscape and highlights confidence in Argentina's ability to deliver large-scale volumes to international buyers over the medium term. Further announcements regarding additional export agreements and project milestones are anticipated as infrastructure development progresses.