Belgium shipping company, Exmar, and Argentine energy firm, YPF, have agreed on a $150 million settlement related to the early termination of a charter contract, Kallanish Energy reports.
The companies have been in a dispute since June, when YPF told Exmar it was declaring force majeure on their charter agreement for the Tango floating liquefied natural gas (FLNG) barge.
At the time, YPF said the effects of the Covid-19 pandemic both globally and domestically, have hindered its ability to perform obligations under the agreements with Exmar. This included the inability to pay the invoices due for services performed for the period starting the second half of March 2020.
Under this week’s settlement deal, YPF will pay Exmar $128 million in 18 monthly instalments backed by “adequate financial security.” An initial payment of $22 million was made on Oct. 19.
The Tango FLNG vessel, located in Bahia Blanca, has capacity to process 0.5 million tonnes per annum of liquefied natural gas. The floating facility, which was chartered for 10 years, enabled Argentina to export its first Vaca Muerta LNG cargo in November 2019.
The barge is now available for other projects. “The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports,” said Exmar.
This post appeared first on Kallanish Energy News.