Golar LNG Secures Deals for Another FLNG Project

Expected to commence production in 2022, the FLNG unit will liquefy gas as part of the first phase of the Greater Tortue Ahmeyim project and be located on the Mauritania and Senegal maritime border.

FLNG Gimi is designed to produce an average of approximately 2.5 million tons of LNG per annum, with the total gas resources in the field estimated to be around 15 trillion cubic feet.

Concurrent with its entry into the LOA, Gimi MS has entered into a subscription agreement — subject to closing conditions — with First FLNG Holdings, an indirect wholly-owned subsidiary of Keppel Capital, in respect of their participation in a 30% share of FLNG Gimi.

As informed, Gimi MS will construct, own and operate FLNG Gimi and First FLNG Holdings will subscribe for 30% of the total issued ordinary share capital of Gimi MS for a subscription price equivalent to 30% of the project cost.

Construction of FLNG Gimi is expected to cost approximately USD 1.3 billion, excluding financing costs.

Keppel and Golar have previously partnered on the FLNG Hilli Episeyo, the world’s first FLNG conversion project, which has been a successful proof of concept as a quick and cost-efficient solution for monetizing stranded gas reserves. Hilli Episeyo has maintained 100% uptime since commencing commercial operations in June 2018 and consistently despatched two LNG cargoes each month.

“The potential of Golar’s floating LNG solution was reinforced by FLNG Hilli Episeyo’s proof of concept, Heads of Terms were agreed with BP and its partners in April 2018 and work has been ongoing via the previously reported Limited Notice to Proceed,” Iain Ross, Golar CEO, said.

“We are pleased to further strengthen Keppel’s relationship with Golar in capturing growing opportunities in the LNG space. This transaction reflects Keppel’s confidence in the prospects of the FLNG sector,” Loh Chin Hua, CEO of Keppel Corporation, commented.

“The Gimi investment can also be a seed asset for a possible infrastructure fund managed by Keppel Capital in the future. After the asset has been completed and de-risked, the 30% interest may be injected into Keppel Infrastructure Trust,” he continued.

With the funds from the subscription of shares by its shareholders, Gimi MS will acquire and own the Moss LNG carrier Gimi which will be converted into an FLNG vessel by Keppel Shipyard.

In December 2018, Keppel Shipyard received the limited notice to proceed from Golar to commence early conversion works. The carrier has been relocated from layup to Keppel Shipyard in Singapore where conversion works will soon start.

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