TotalEnergies greenlights $700mn Argentine gas project
TotalEnergies and its partners Wintershall Dea and Pan American Energy have taken a final investment decision (FID) on developing the $700mn Fenix gas project off the coast of Argentina, the companies said on September 19.
Representing the world's southernmost gas project, Fenix is set to be developed with three horizontal wells from an unmanned platform in waters 70 m deep. The gas will be flowed through a 35-km pipeline to the TotalEnergies-operated Vega Pleyade platform and treated onshore at the company's Rio Cullen and Canadon Alfa plants.
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Production is due to begin in 2025 and reach 10mn m3/day.
“This latest development demonstrates TotalEnergies' ability to leverage its hydrocarbon portfolio with projects that have low technical costs and low emissions, that can be brought on stream fast by harnessing synergies with existing facilities," said David Mendelson, senior vice president for Americas at TotalEnergies' upstream division. “With first gas less than two and a half years from FID, the Fenix project will contribute to maintaining our production levels in Tierra del Fuego and securing supply to the Argentinean gas market."
The project will have a carbon intensity of only 9 kg of CO2/barrel of oil equivalent, TotalEnergies said, noting it would use wind farms and heat recovery systems.
The FID on Fenix comes after Argentine authorities extended the CMA-1 concession containing the field in April for another 10 years. They also granted the project tax breaks.