Golar LNG (NASDAQ:GLNG) has announced a landmark agreement with Pan American Energy (PAE) to deploy a Floating Liquefied Natural Gas (FLNG) vessel in Argentina.

The 20-year venture aims to monetize gas resources from the Vaca Muerta shale formation, with LNG exports starting by 2027.

The FLNG Hilli vessel will operate with a capacity of 2.45 million tons per annum, with a base tariff of US$2.6/mmBtu.

As part of the agreement, Golar will acquire a 10% interest in Southern Energy, a joint venture with PAE. This venture will handle the purchase of domestic gas and the operations, sales, and marketing of LNG.