Stifel sees contract win for Golar LNG on YPF, Shell deal

Stifel keeps a Buy rating on Golar LNG (GLNG) after Argentinean newspaper Infobae reported YPF (YPF) is in negotiations to sign a 20-year memorandum of understanding with Shell (SHEL) for up to 10 mtpa of liquified natural gas. Offtake is expected to start in 2027/2028, the analyst tells investors in a research note. The firm says that if correct, there would be enough offtake to finance the project. Stifel would expect Golar to win a contract on the MkII vessel currently being converted. Should that happen, it would expect a second MkII vessel to be built and sent to Argentina. There is “clear momentum in getting more Golar FLNG units on the water,” contends Stifel. With each MkII FLNG units worth $17 per share, Stifel expects there to be “significant upside in the stock as deals are announced.”