Golar LNG announced that it has reached a final agreement with Pan American Energy to deploy a floating liquefied natural gas vessel in Argentina for 20 years to extract shale gas from the Vaca Muerta shale in the Neuquen Basin, the world's second-largest shale gas resource.
According to the Finance Intelligence APP, Golar LNG (GLNG.US) rose more than 10% in pre-market trading on Friday. Earlier, the company announced that it had reached a final agreement with Pan American Energy to deploy a floating liquefied natural gas vessel in Argentina for 20 years to extract shale gas from the Vaca Muerta shale in the Neuquen Basin, the world's second-largest shale gas resource.
Golar LNG stated that the purpose of this project is to use its FLNG Hilli, which has a rated production capacity of 2.45 million tons/year, to export liquefied natural gas beginning in 2027, making Argentina an LNG exporting country.
As part of the transaction, the company announced that it will form a joint venture with Pan American Energy, holding a 10% stake. The joint venture will be responsible for buying domestic natural gas in Argentina, operating and selling and marketing liquefied natural gas.
Golar LNG stated that this plan is the first stage of a potential multi-ship project, and other major natural gas producers in Argentina are expected to join.