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Golar LNG confirms vessel purchase for FLNG conversion

Tor Olav Trøim-backed Golar LNG has confirmed picking up the 2004-built LNG carrier earmarked for conversion to a floating liquefied natural gas (FLNG) unit.

A purchase widely reported by brokers involved TMS Cardiff Gas’ 148,000 cu m Fuji LNG for $73m. Golar said it will pay $11m in the second quarter, with the remainder in early 2024, after the Moss-type vessel is delivered.

“With key long-lead items on order, focus is now on a yard EPC contract and financing. A final investment decision on the MKII project is linked to securing attractive finance and further visibility on a charter, with strong progress on both fronts during the quarter,” the company said commenting on the conversion project in its quarterly earnings report.

Golar LNG also confirmed the sale of its FLNG conversion candidate the 1977-built carrier Gandria for net proceeds of $15m. The deal for the 125,000 cu m laid-up vessel is expected to close in the second half of 2023.

The Nasdaq-listed FLNG-focussed firm has identified Africa as one of its key regions. Earlier in May the company inked a memorandum of understanding with Nigeria’s state oil firm NNPC to build a floating liquefied natural gas (FLNG) plant and In March, bought out New Fortress Energy in the FLNG facility operating offshore Cameroon. The Golar LNG-owned Golar Gimi FLNG unit destined for BP’s Tortue project offshore Mauritania is also scheduled to be the first unit delivered in the region and most likely commence production in 4Q 2023.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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