Golar Seals FLNG Deal With BP’s Tortue
Golar LNG announced Febrary 26 that it has sealed a deal with to supply a floating LNG (FLNG) unit to BP’s Greater Tortue Ahmeyim project, located offshore Mauritania and Senegal.
The 20-year contract will see Bermuda-registered shipowner Golar convert, and then lease and operate, the FLNG Gimi. The unit can produce up to 2.5mn mt/y of LNG. The financial terms of the agreement were not revealed.
The contract stems from a preliminary agreement and heads of terms for a charter agreement with BP announced by Golar in April. Golar subsidiary Gimi MS will work with Singapore’s Kepple Corporation to build the unit. Keppel will subscribe for 30% of in Gimi MS.
Construction of the unit is expected to cost around $1.3bn, excluding financing costs. Golar said it is in the final stages of agreeing a $700mn long-term financing facility from a syndicate of international banks.
Keppel and Golar previously partnered on the Hilli Episeyo liquefaction vessel. West Africa's first floating LNG venture exported Cameroon’s first ever LNG cargo in May.
"The potential of Golar's floating LNG solution was reinforced by FLNG Hilli Episeyo's proof of concept,” Golar CEO Iain Ross noted in welcoming the deal with BP.
The Gimi LNG vessel has been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to commence soon.
Keppel CEO Loh Chin Hua said the "transaction reflects Keppel's confidence in the prospects of the floating LNG sector.” The Gimi investment could become a seed asset for a possible infrastructure fund managed by Keppel Capital in the future, he added.
The Tortue project on the Mauritania and Senegal maritime border boasts estimated gas reserves of 425bn m3. BP, which holds 60% of the project, plans to expand LNG production from 2.5mn-10mn mt/y in later phases.
BP announced a final investment decision on Tortue in late December. The other partners in the project are US Kosmos Energy, Senegal's state Petrosen and Mauritania's state SMHPM.