London: Golar LNG has said it has reached an agreement on the commercial terms and conditions with Societe Nationale de Hydrocarbures (SNH) and Perenco Cameroon for the development of a floating liquefied natural gas export project in Cameroon.
An initial agreement was signed late last year, and now that the conditions are agreed the project just needs government approval, which is expected in the third quarter of this year.
Golar will provide the liquefaction facilities and services under a tolling agreement to SNH and Perenco, who will be responsible for marketing the project located near shore off the coast of Cameroon. Natural gas reserves from offshore Kribi will be exported from the FLNG facility, which is currently under construction at Keppel Shipyard in Singapore.
Gary Smith, ceo of Golar, commented “Golar is delighted to have achieved this very significant milestone in what will be our first GoFLNG project. This project in Cameroon is breaking new ground both technically and commercially for the LNG industry and would not have been possible without the innovative approach adopted by the teams at Perenco, SNH and Golar. This commitment with Perenco represents a further step in the implementation of Golar’s strategy to become the industry’s leading integrated midstream LNG services provider, supporting resource owners, gas producers and gas consumers.”
Golar added that it expects the project to deliver the company an EBITDA in the range of $170m to $300m in the first full year of operation.