TotalEnergies to go ahead with gas project off Argentina

TotalEnergies and its partners has approved the final investment decision for the Fenix gas development, located 60 km off the coast of Tierra del Fuego in southern Argentina.

Through its Total Austral affiliate, TotalEnergies operates the project with a 37.5 percent interest, in partnership with WintershallDea (37.5 percent) and Pan American Sur (25 percent). 

The Fenix field will be developed through three horizontal wells, drilled from a new unmanned platform in 70 meters water depth. The gas will be transported through a 35km pipeline to the TotalEnergies-operated Véga Pleyade platform and treated onshore at the Rio Cullen and Cañadon Alfa plants, also operated by the Company.

“This is an important step for Argentina, Wintershall Dea and all partners involved. Fénix is a major natural gas project, that will contribute significant natural gas volumes for more than 15 years to the country’s long-term energy supply,” said Thilo Wieland, Wintershall Dea’s board member responsible for Latin America. “At the same time, this decision is a proof of our commitment to Argentina and will strengthen its role as a core country in our global portfolio.”

“The Fénix development represents a material pillar for the growing domestic gas production and will support Argentina to meet the increasing demand and to offset imports. Furthermore, with the significant investments and the ripple effects in the supply chain, Fénix will also create value for the Tierra del Fuego province”, explained Manfred Böckmann, Managing Director of Wintershall Dea Argentina.

First gas from Fénix is expected beginning of 2025, and is planned to reach a peak production of around 10 million cubic metres of gas per 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 onstream fast by harnessing synergies with existing facilities," said David Mendelson, Senior Vice President, Americas at TotalEnergies Exploration & Production. “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. With a carbon intensity of 9 kgCO2/boe, the project will benefit from the Company’s technologies in lowering the carbon intensity, such as the installation of wind farms and heat recovery systems.”

On April 18, 2022, the national authorities granted the CMA-1 concession, including Fenix, an extension for 10 years until April 30,2041.