YPF calls force majeure on Tango FLNG

Belgium’s Exmar, the Nicolas Savery-led shipowner, has been notified by YPF of force majeure on the Tango FLNG unit.

The Argentinian energy company YPF claimed in its notice that effects of the coronavirus pandemic, both worldwide and in Argentina have hindered YPF’s ability to perform its obligations under the charter and services agreement with Exmar for the Tango FLNG.

These include, but are not limited to, YPF’s ability to pay the invoices due for services performed for the period starting the second half of March 2020.

Exmar said in its statement it considers the notice to be unlawful, has reserved its rights and is considering its best option to defend its interests.

Irrespective of the outcome of the dispute with YPF in respect of the notice, Exmar is contemplating several measures to safeguard its liquidity position, which is on the basis of our current forecast, not at risk till the end of 2020.

Tango FLNG is designed to operate with a liquefaction capacity of approximately 0.5 million tons of LNG per year and is serving YPF in exporting Vaca Muerta gas reserves to international markets.