TotalEnergies has reached a final investment decision (FID) for the Fenix gas project in Argentine waters, which will involve an investment of around $706m.
The French energy company has an operating stake of 37.5% in the Fenix gas field. Its partners are WintershallDea (37.5%) and Pan American Sur (25%).
Located 60km off the Tierra del Fuego coast in southern Argentina, the field will be developed through the drilling of three horizontal wells.
The drilling will be carried out from a new unmanned platform in a water depth of 70m.
According to TotalEnergies, the gas produced from the Fenix field will be transported via a 35km long pipeline to the company-operated Véga Pleyade platform, which has been producing since 2016.
The gas received from Fenix will then be treated onshore at the Rio Cullen and Cañadon Alfa plants, which are also operated by the French oil and gas major.
Expected to be brought onstream in early 2025, the Fenix gas project is estimated to yield 10 million cubic meters per day of natural gas, which is 70,000 barrels of oil equivalent per day.
TotalEnergies exploration and production Americas senior vice president David Mendelson said: “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.
“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.”
The Fenix field is part of the Cuenca Marina Austral 1 (CMA-1) concession, which was granted a 10-year extension by the national authorities in Argentina in April 2022.
