Latest news with #FLNGs
Yahoo
02-05-2025
- Business
- Yahoo
Golar entered into 20-year agreements for 5.95mtpa nameplate capacity in Argentina – one of the world's largest FLNG development projects.
Golar LNG Limited ('GLNG', 'Golar' or 'the Company') is pleased to announce the Final Investment Decision ('FID') and fulfilment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo ('FLNG Hilli' or 'Hilli'), first announced on July 5, 2024. The vessel will be chartered to Southern Energy S.A. ('SESA'), offshore Argentina. In addition, Golar and SESA have signed definitive agreements for a 20-year charter for the MKII FLNG, currently under conversion at CIMC Raffles shipyard in Yantai, China. The MKII FLNG charter remains subject to FID and the same regulatory approvals as granted to the FLNG Hilli project, expected within 2025. Key commercial terms for the respective 20-year charter agreements include: FLNG Hilli (nameplate capacity of 2.45 MTPA): Expected contract start-up in 2027, net charter hire to Golar of US$ 285 million per year, plus a commodity linked tariff component of 25% of Free on Board ('FOB') prices in excess of US$ 8/mmbtu. MKII FLNG (nameplate capacity of 3.5 MTPA): Expected contract start-up in 2028, net charter hire to Golar of US$ 400 million per year, plus a commodity linked tariff component of 25% of FOB prices in excess of US$ 8/mmbtu. The two FLNG agreements are expected to add US$ 13.7 billion in earnings backlog to Golar over 20 years, before adjustments (based on US-CPI) to the charter hire and before commodity linked tariff upside. For every US$ 1/mmbtu above the US$ 8/mmbtu, the total upside for Golar will be approximately US$ 100 million when both FLNGs are in operation. Subject to a 3-year notice and payment of a fee, SESA may reduce the term of the agreement to 12 years for the FLNG Hilli and to 15 years for the MKII FLNG. The commodity linked tariff component is upside oriented. Golar will make 25% of realized FOB prices above a threshold of US$ 8/mmbtu, with no cap to the upside for gas prices. Golar has also agreed to a mechanism where the charter hire can be partially reduced for FOB prices below US$ 7.5/mmbtu down to a floor of US$ 6/mmbtu. Under this mechanism, the maximum accumulated discount over the life of both contracts has a cap of US$ 210 million, and any outstanding discounted charter hire amounts will be repaid through an additional upside sharing if FOB prices return to levels above US$ 7.5/mmbtu. Golar is not exposed to further downside in the commodity linked FLNG charter mechanism. SESA is a company formed to enable LNG exports from Argentina. SESA is owned by a consortium of leading Argentinian gas producers including Pan American Energy (30%), YPF (25%), Pampa Energia (20%) and Harbour Energy (15%), as well as Golar (10%). The gas producers have committed to supply their pro-rata share of natural gas to the FLNGs under Gas Sales Agreements ('GSA') at a fixed price per mmbtu before adjustments (based on US-CPI). Golar's 10% shareholding in SESA provides additional commodity exposure. The project has received the full support of the National and Provincial Governments in Argentina that granted all necessary approvals including (i) the first ever unrestricted 30-year LNG export authorization in Argentina; (ii) qualification for the Incentive Regime for Large Investments ('RIGI'); and (iii) provincial approval by the province of Río Negro for the offshore and onshore Environmental Impact Assessments for FLNG Hilli. The FLNGs will be located in close proximity of each other, offshore in the Gulf of San Matias Gulf in the province of Rio Negro, Argentina. The vessels will monetize gas from the Vaca Muerta formation, the world's second largest shale gas resource, located onshore in the province of Neuquen, Argentina. FLNG Hilli will initially utilize spare volumes from the existing pipeline network. SESA intends to facilitate for a dedicated pipeline to be constructed from Vaca Muerta to the Gulf of San Matias to serve gas supply to the FLNGs. The project expects to benefit from significant operational efficiencies and synergies from two FLNGs in the same area. Golar's CEO, Karl Fredrik Staubo commented: 'Golar is excited to partner with the leading gas producers in Argentina in establishing the country as an LNG exporter. The vast resources of the Vaca Muerta formation will provide the LNG market with a reliable long-term source of attractive LNG supplies, and a significant contribution to Argentina. For Golar, the project adds robust earnings backlog, attractive commodity upside potential in the FLNG tariff and strong partner alignment through our shareholding in SESA.' About SESA: Southern Energy S.A. is a company founded in 2024 for the purpose of LNG exports of Argentinian natural gas. SESA's shareholders comprise Pan American Energy (30%), YPF (25%), Pampa Energia (20%), Harbour Energy (15%) and Golar LNG Ltd. (10%). SESA will be responsible for procuring natural gas from the domestic market, and facilitating the necessary infrastructure to bring the natural gas to the flange of the FLNGs in the Gulf of San Matias. SESA will also be responsible for the operations of the FLNGs with support from Golar, and for the marketing and sale of the LNG produced. About Golar LNG Ltd: Golar LNG Limited ('GLNG') is a NASDAQ listed maritime LNG infrastructure company. Through its 79-year history, the company has pioneered maritime LNG infrastructure including the world's first Floating LNG liquefaction terminal (FLNG) and Floating Storage and Regasification Unit (FSRU) projects based on the conversion of existing LNG carriers. Today Golar is a leading pure play FLNG company, and the only proven provider of FLNG as a service. FORWARD LOOKING STATEMENTSThis press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as 'may,' 'could,' 'should,' 'would,' 'expect,' 'plan,' 'anticipate,' 'intend,' 'forecast,' 'believe,' 'estimate,' 'predict,' 'propose,' 'potential,' 'continue,' 'subject to' or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Golar LNG Limited undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law. Hamilton, Bermuda2 May 2025 Investor Questions: +44 207 063 7900Karl Fredrik Staubo - CEOEduardo Maranhão - CFOStuart Buchanan - Head of Investor Relations This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading ActSign in to access your portfolio
Reuters
25-03-2025
- Business
- Reuters
Delfin LNG and German firm SEFE sign 15-year supply deal
HOUSTON, March 25 (Reuters) - Delfin LNG and German company Securing Energy For Europe (SEFE) have signed a 15-year agreement for 1.5 million tons of U.S. LNG per annum, the companies said on Tuesday. Under the agreement, liquefied natural gas would be exported from floating LNG (FLNG) vessels that Delfin wants to deploy off Cameron Parish, Louisiana, Delfin said in a press release. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The free-on-board deliveries will commence immediately following the construction and commissioning of the FLNGs, Delfin said. It did not provide a timeline. The project does not yet have a final investment decision. "This long-term agreement with Delfin enables SEFE to further diversify its LNG portfolio with greater destination flexibility," said SEFE's chief commerical officer, Frederic Barnaud. SEFE also has LNG supply agreements with other U.S. producers including Venture Global LNG (VG.N), opens new tab. Last Friday, the U.S. Maritime Administration issued a license authorizing Delfin to build a deepwater port to export LNG from the United States. The company also has a license from the Department of Energy to export up to 13.2 MTPA of the superchilled gas to countries that do not have a free trade agreement with the United States. The U.S. is the world's largest exporter of LNG and has played a crucial role in providing Europe and Germany with the gas it needs to replace Russian gas following Russia's invasion of Ukraine.
