Why Shares Of Golar LNG Partners Are Trading Higher

Shares of Golar LNG Limited GLNG were trading higher by more than 4 percent on Wednesday following the signing of a Heads of Agreement for the development of a floating liquefied natural gas (LNG) export project 20 kilometers off the coast of Cameroon.

Golar LNG will provide the liquefaction facilities and services under a tolling agreement to Societe Nationale de Hydrocarbures and Perenco Cameroon as owners of the upstream joint venture.

The company estimates that the allocated reserves will be produced at the rate of some 1.2 million tonnes of LNG per annum over an approximate eight-year period. The project will be the first floating LNG export project in Africa and will see Cameroon join a small number of nations that export LNG.

Production is expected to begin in the first half of 2017, while commercial agreements and necessary licenses will be finalized in the first half of 2015.