Page 14 - GLNG Week 22

GLNG AFRICA GLNG

Golar LNG reveals outlook for projects

in Africa, South America

PROJECTS & BERMUDA-REGISTERED Golar LNG has
COMPANIES issued an update on its activities related to pro-
jects in Africa and South America.
In a report on its performance in the first
quarter of 2020, Golar LNG said it was working
to hammer out an agreement on revising the
schedule and budget for the conversion of the
Gimi floating LNG (FLNG) vessel. “We are in
advanced and positive discussions with our main
building contractor, Keppel Shipyard Ltd, and
with engineering topsides subcontractor Black
and Veatch, on a revised cost and time schedule
for the FLNG Gimi conversion,” it stated.

Senegal/Mauritania
BP and its partners had previously struck a deal
with Golar LNG’s subsidiary Gimi MS Corp. on
the use of the Gimi to develop Tortue/Ahmeyim,
an offshore block that straddles the border
between Senegal and Mauritania. In April, advantage of merchant power opportunities The Golar Nanook is
though, they declared force majeure on the pro- where the marginal cost of power exceeds the serving as an LNG
ject, saying that the coronavirus (COVID-19) LNG purchase price (currently below $2 per import terminal near
pandemic had forced them to push their work mmBtu delivered ex-ship in Brazil),” Golar the port of Sergipe in
schedule back by 12 months. LNG said in its statement. “We also expect Golar Brazil.
Since then, Golar LNG has been in talks with Power to continue to progressively convert the
the contractors it hired for the conversion. The small-scale letters of intent [LoIs] they have into
company indicated in its interim report that it binding sales agreements over the course of this
had put forward proposals for a revised time and year and continue to sign new ones.”
cost schedule but did not divulge any details. “If The company further stated that it hoped to
implemented, this would reduce Golar’s imme- strike similar deals for the delivery of LNG to
diate liquidity contribution to the FLNG Gimi additional Brazilian facilities in the near future. It
between the second quarter of 2020 and the orig- explained that it was working with local partners
inal second-quarter 2022 delivery date,” it said. in Latin America to support the development of
“The consequences of any delay to the returns gas-fired TPPs with a total generating capacity of
available from the project will be dependent on 10.6 GW. All of these projects “have downstream
the ultimate duration and cause of the delay monetisation routes through a combination of
The company claimed by BP and the final terms of the revised power generation, gas consumption (by com-
conversion building agreements,” it added.
mercial and industrial users) and small-scale
further stated LNG distribution via cabotage and ISO contain-
that it hoped to Brazil ers to end-users,” it said.
Golar LNG went on to say that it expected its
It also noted that one of these projects was
strike similar Brazilian projects to make progress in the near nearly ready to launch. “The Barcarena terminal
future.
is expected to reach a final investment decision
The company’s Golar Power subsidiary is (FID) later this year or early next year, with the
deals for the involved in Brazil within the framework of an associated 605-MW power station currently
delivery of LNG agreement to let one of its vessels, a floating stor- anticipating FID in mid-2021,” it said. “Over
to additional age and regasification unit (FSRU) known as the the next four months, we expect to make fur-
ther progress on reaching agreement with key
Golar Nanook, serve as an LNG import termi-
Brazilian nal near the port of Sergipe. The FSRU is taking industrial customers for the supply of gas from
delivery of LNG and then regasifying it before the Barcarena-based FSRU that is expected to
facilities. piping it onshore to Usina Termoelétrica (UTE) commence operations in 2022.”
Golar LNG also said it hoped to finalise plans
Porto de Sergipe.
UTE is a gas-fired thermal power plant (TPP) for securing a floating storage unit (FSU) near
owned by Brazil’s Centrais Elétricas de Sergipe the port of Suape later this year. Additionally,
(CELSE). It was commissioned in February of it reported that it was in discussions with BR
this year and has a generating capacity of 1,516 Distribuidora on plans for distributing LNG
MW. through the Brazilian company’s network of
“We expect Sergipe [CELSE] to take 7,600 filling stations.™

P14 www. NEWSBASE .com Week 22 05•June•2020