HAMILTON, BERMUDA--(Marketwire - Nov 1, 2012) - Golar LNG Ltd ("Golar" or "the Company")
announced today that it has reached
agreement for the development of the Company's first floating liquefied
gas vessel (FLNGV). The agreement is with Keppel Shipyard Limited
and is based on the conversion of existing Moss LNG carriers of which Golar
three potential candidates. Golar has already successfully converted
other Moss carriers into Floating Storage and Regasification Units ("FSRU's")
which Keppel has converted two.
Use of the Company's existing Moss LNG vessels, proven topside
technology together with the appointment of Keppel to undertake the
and conversion enables Golar's FLNGV's to facilitate the efficient
of gas monetization opportunities when it comes to cost and schedule. The
gas supply for these units will be pipeline quality gas, lean
reserves and, potentially, lean gas from otherwise stranded fields. The
solution gives customers increased flexibility, quicker development times
the unique ability to develop reserves that are currently uneconomic. It
gives them an opportunity to capitalize on the large global gas spreads and
attractive economics associated with gas as an energy resource.
The first FLNGV will have a capacity of up to 2 million tonnes per annum
will utilize the existing 125,000 cubic meters of LNG storage on board
carrier. Keppel will start the FEED study in November and detailed design
engineering is expected to be concluded around mid-2013 when vessel
is expected to start. The first unit will be developed through
construction stages in order to accommodate customer requirements and
expected to be ready for production by Q1 2015. Golar retains the option
convert two additional vessels with Keppel under the same agreement. The
sees its partnership with an experienced shipyard and a production
provider with significant LNG experience as valuable for minimizing
risk in the project.
This project represents the next phase in Golar's strategy of expanding
presence within the LNG industry. The Company aims to offer its
unique, flexible and highly economical solutions, thereby capturing
substantially greater share of the overall LNG commodity trade value. The
anticipates that the first unit can be financed through a combination
existing cash, future cash flow, further drop downs and new debt facilities
presently do not envisage any need for additional equity.
Golar's Chairman John Fredriksen said, "Golar helped to open up the LNG
through the introduction of floating receiving terminals which have opened a
of new markets for LNG. Our FLNGV's will be able to provide a fast-track,
effective solution for developing new LNG production capacity. We believe
technology will be extremely attractive to companies looking to develop
natural gas assets and we are actively pursuing multiple opportunities. It
Golar's intention to market the solution for field developments as well as
direct production from existing pipeline infrastructure. The Board
particular opportunities in the African region, where gas prices remain
Significantly, large quantities of gas are currently being flared and
infrastructure doesn't naturally support large land based LNG investments.
Board is excited about the new business line and sees massive opportunities
growth in the next five to ten years".
Golar LNG Limited
October 31 2012
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Source: Golar LNG via Thomson Reuters ONE