Golar LNG and Rosneft Oil Company have entered into a Memorandum of Understanding (MoU) that foresees co-operation between the companies in the area of floating liquefaction (FLNG) and transportation of natural gas. Under this MoU, the companies will enter into discussions to develop opportunities for the use of Golar’s GoFLNG facilities in Latin America and potentially other locations. The parties are targeting signing of two FLNG tolling agreements for projects within Rosneft’s portfolio.
This memorandum between Golar and Rosneft represents an opportunity for both companies to align their objectives, combining Golar’s leading midstream LNG credentials (liquefaction, transportation and regasification) and Rosneft’s upstream portfolio. Rosneft is the third largest gas producer in Russia. Rosneft gas production reached 42.1bcm in 2013, while the recoverable natural gas reserves topped 6.5tcm. The company target is to reach 100bcm of annual gas production by 2020. Golar is one of the world’s largest independent owners and operators of LNG carriers. Golar delivered the world’s first Floating Storage and Regasification Units (FSRU) based on the conversion of existing LNG carriers. Golar’s latest strategic move is to extend its business model further upstream by deploying its floating liquefaction technology (GoFLNG).