Golar LNG and Rosneft have agreed to cooperate in the area of floating liquefaction (FLNG) and transportation of natural gas.

The companies have signed a memorandum of understanding (MoU) to enter negotiations to develop opportunities for the use of Golar’s GoFLNG facilities in Latin America, and potentially other locations.

Both the firms are planning to sign two FLNG tolling agreements for projects within Rosneft’s portfolio.

"Golar LNG developed the world’s first floating storage and regasification unit (FSRU) projects, based on the conversion of existing LNG carriers."

The MoU combines Golar’s midstream LNG credentials, which include liquefaction, transportation and regasification with Rosneft’s upstream portfolio.

Russian state oil firm Rosneft produced 42.1bcm of gas in 2013, while recoverable natural gas reserves reached 6.5tcm.

The company is planning to produce 100bcm of gas per year by 2020.

Rosneft activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.

Golar LNG developed the world’s first floating storage and regasification unit (FSRU) projects, based on the conversion of existing LNG carriers.

The company is planning to extend its business model further upstream by installing its GoFLNG floating liquefaction technology.