Golar LNG Ltd. and Rosneft Oil Co. entered into a memorandum of understanding (MoU) that foresees cooperation between the companies in the areas of floating liquefaction (FLNG) and transportation of natural gas, Golar said in a March 5 statement.

Under the MoU the companies will enter into discussions to develop opportunities for the use of Golar’s GoFLNG facilities in Latin America and potentially other locations. The parties are targeting signing of two FLNG tolling agreements for projects within Rosneft’s portfolio.

The MoU represents an opportunity for both companies to align their objectives, combining Golar’s midstream LNG credentials and Rosneft’s upstream portfolio.

Rosneft is the third largest gas producer in Russia. Its gas production reached 42.1 billion cubic meters (Bcm) in 2013, while the recoverable gas reserves topped 6.5 trillion cubic meters. The company target is to reach 100 Bcm of annual gas production by 2020.