A Golar LNG floating LNG unit is headed to Argentina.
The Tor Olav Troim-backed company announced on Friday that it had cut a deal to charter one of its FLNG units — likely the FLNG Hilli — for 20 years for work at the Vaca Muerta shale formation.
“We are excited to enter a partnership with Pan American Energy, one of the leading energy companies in Latin America,” chief executive Karl Staubo said.
“The project will provide an international outlet for Argentina’s vast and attractive natural gas reserves, creating value for Argentina and its gas stakeholders. The project expands Golar’s global footprint, with further growth potential.”
Gas exports are set to begin in 2027.
If the FLNG Hilli is used, its 2.45m tonne per year nameplate capacity will provide a $2.60 per million BTU plus the commodity-linked pricing element.
The agreement also provides Golar with a 10% stake in Southern Energy, a joint venture with Pan American Energy for the purchase of natural gas, operations and sale and marketing of Argentinian LNG.
The FLNG Hilli is currently in Cameroon and is under contract until 2026.
The company said, in May alongside its first quarter earnings, that a previously announced framework agreement for the FLNG Hilli had progressed to detailed contract negotiations.
Then, Staubo said the contract could include the FLNG Hilli or the Golar Mark II FLNG conversion.
On Thursday, Golar’s New York-listed shares closed at $31.49 after rising $0.47.
In pre-market trading, shares rose another $2.78 to $34.27.
