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Golar LNG (NASDAQ:GLNG) +10.3% pre-market Friday after saying it entered into definitive agreements with Pan American Energy (OTCQB:PAANF) for a 20-year deployment of a floating liquefied natural gas vessel in Argentina, tapping into the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas resources.
Golar LNG (GLNG) said the project aims to utilize its FLNG Hilli, with a nameplate capacity of 2.45M tons/year; the project is expected to start LNG exports by 2027, establishing Argentina as an LNG exporter.
As part of the deal, the company said it will hold a 10% stake in a joint venture with Pan American Energy (OTCQB:PAANF), which will be responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.
Golar LNG (GLNG) said it sees the initiative as the first phase of a potential multi-vessel project, anticipating that other large natural gas producers in Argentina will join.