09:22 AM EDT, 07/05/2024 (MT Newswires) -- Golar LNG (GLNG) said Friday it signed agreements with Pan American Energy for the 20-year deployment of a floating liquefied natural gas ship in Argentina.

The project will tap into the resources from the Vaca Muerta shale formation in the Neuquina Basin, Golar said, adding it's expected to begin LNG exports in 2027.

The project is expected to use Golar's FLNG Hilli, which has a nameplate capacity of 2.45 million tons per annum, representing an equivalent net tariff of $2.6/mmBtu, based on 90% capacity utilization, with a further commodity-linked pricing element, the company said.

As part of the deal, Golar will get a 10% stake in Southern Energy, a joint venture with Pan American Energy, which will be involved in the purchase of domestic natural gas, operations, as well as the sale and marketing of LNG.

Golar shares were 4.7% higher in recent premarket activity.

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