Stifel says Argentina FLNG momentum should expedite signing of Golar contract

Stifel notes that Transportadora De Gas del Sur S.A. received approval yesterday to expand the first segment of the Perito Francisco Pascasio Moreno gas pipeline, which will debottleneck gas egress from the Vaca Muerta shale formation. The firm, which says FLNG momentum is “clearly building quickly” in Argentina, expects this should expedite the signing of a contract for Golar LNG’s (GLNG) first MKII FLNG conversion, the Fuji). The firm, which expects the contract completion to be a catalyst for shares, as incorporated into its $53 target price, maintains a Buy rating on Golar LNG, which is up about 5% to $42.43 in afternoon trading.