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    Cameroon FLNG 'Delayed': Perenco

Summary

Cameroon FLNG has fallen behind schedule. This may have financial implications for ship provider Golar LNG.

by: Mark Smedley

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Breaking News, Natural Gas and LNG News, Africa, Corporate, Litigation, Exploration & Production, Infrastructure, LNG, News By Country, Cameroon, France

Cameroon FLNG 'Delayed': Perenco

Cameroon FLNG, West Africa’s first floating LNG project, has fallen behind schedule, a spokesman for its French-UK operator Perenco has confirmed to NGW

This may have financial implications for Golar LNG, which has provided the production ship Hilli Episeyo, although Perenco would not comment.

“The first cargo has slipped by a few weeks. It is now scheduled for April 22/23 but may be delayed by a further week, until the end of the month or early May,” the Perenco spokesman said, adding: “I understand this is fairly normal and is just part of the process of commissioning of the Hilli Episeyo, and that all parties are keen to proceed cautiously with regards ramping up the LNG production facilities."

The statement does not suggest a punitive approach over commissioning. However, penalties may be applied in the event of delay: Golar LNG acknowledged this February 28 when it said that if its ship is not commercially accepted by Perenco by mid-April 2018 then, in line with its contract, Golar LNG is liable to a penalty payment of $100,000/day.

The Perenco spokesman declined to comment on the specific issue of financial penalties.

Golar confirmed first production of LNG March 12 from the new facility, the first of its kind offshore west Africa. Once Cameroon FLNG is fully commissioned, Gazprom Marketing & Trading will be the long-term offtaker for a period of 15 years, as contractually agreed in 2015.