TotalEnergies begins production at Fenix gas field in Argentina, marking $706m investment

TotalEnergies has started production at the Fenix gas field, located 60 kilometres off the coast of Tierra del Fuego in southern Argentina, after a significant investment of $706 million. The project, which is part of the Cuenca Marina Austral 1 (CMA-1) concession, is expected to have a daily production capacity of 10 million cubic metres of natural gas, equivalent to about 70,000 barrels of oil equivalent per day (boe/d). TotalEnergies holds a 37.5% operated interest in the CMA-1 concession, with Harbour Energy and Pan American Energy owning 37.5% and 25%, respectively.

The Fenix project includes a newly installed unmanned platform, positioned in 70 metres of water depth. The platform is connected to the existing infrastructure of the CMA-1 concession via a 35-kilometre subsea pipeline that transports the gas to TotalEnergies’ Véga Pléyade platform. From there, it is processed at the onshore facilities of Río Cullen and Cañadon Alfa, both of which are also operated by TotalEnergies. This infrastructure linkage allows Fenix to optimise costs while keeping emissions low.

TotalEnergies’ low-carbon approach to this project stands out, with the Fenix development designed to emit just 9 kilograms of CO2 per barrel of oil equivalent (CO2e/boe). This reduction in emissions is largely due to the project’s reliance on existing infrastructure, which lowers the need for new resource-heavy developments. The low break-even point of Fenix also aligns with TotalEnergies’ broader strategy of low-cost, low-emission energy projects.

Javier Rielo, Senior Vice President of Exploration & Production Americas at TotalEnergies, noted that the project was completed ahead of schedule, only two years after the final investment decision in 2022. He highlighted that Fenix will play a crucial role in maintaining gas production levels in the Tierra del Fuego region, securing a reliable energy supply for Argentina’s domestic market.

The production from Fenix represents a key development in Argentina’s offshore energy industry, reinforcing the country’s role in natural gas production within the Southern Cone. The project’s success reflects TotalEnergies’ focus on advancing energy efficiency and reducing the carbon footprint of its global operations.