Page 10 - GLNG Week 30 2021

GLNG AFRICA GLNG

The Hilli Episeyo is the
first vessel in the world
to be converted to an
FLNG unit.

Perenco, SNH, Golar LNG strike a deal

on increasing gas deliveries to FLNG

PROJECTS & PERENCO (UK/France) and Société Nationale Karl Fredrik Staubo, the CEO of Golar
COMPANIES des Hydrocarbures (SNH), the national oil com- LNG, described the agreement as satisfactory.
pany (NOC) of Cameroon, have arranged to “We are pleased to announce increased capac-
increase the total volume of natural gas delivered ity utilisation of our FLNG Hilli, unlocking
to the Hilli Episeyo, a floating LNG (FLNG) ves- embedded value to our shareholders by uti-
sel owned by Bermuda-registered Golar LNG. lising more of Hilli’s 2.4mn tonnes [per year]
According to a statement from Golar LNG, of liquefaction capacity,” he commented. “The
the parties struck a deal last week that provides innovative tolling fee arrangement delivers
for Perenco and SNH to deliver additional gas on our announced strategy to increase our The vessel
in quantities sufficient to boost the FLNG’s upstream LNG and gas exposure. Today’s
production capacity to 1.4mn tonnes per year announcement is a further testimony to Hilli’s liquefies gas from
in 2022. This would represent a rise of 16.67% strong track record of 100% commercial
on the vessel’s current capacity of 1.2mn tpy. It uptime since delivery in 2018, and will benefit the Sanaga field,
would also require the use of the FLNG’s second all stakeholders involved in the project, as well
production train, since the companies have only as bringing us closer to our target [of reaching] which is being
been using the first of the vessel’s two 1.2mn tpy full capacity utilisation of Hilli.” developed by
trains to date. The Hilli Episeyo is the first vessel in the
The statement noted that Perenco and SNH world to be converted to an FLNG unit. Accord- Perenco and SNH.
intended to drill and appraise two or three new ing to previous reports, it began its life as one of
incremental wells in 2021 and then upgrade Golar LNG’s 125,000 cubic metre tankers and
upstream production facilities in 2022. These was converted to an FLNG unit at the Keppel
operations will allow the producers to sustain shipyards in Singapore at a cost of $1.2bn. It is
higher output levels into 2023 and beyond, it anchored near the Cameroonian port of Kribi
said. and has been in operation since May 2018.
Additionally, Golar LNG reported that the The vessel liquefies gas from the Sanaga
agreement between the parties gave SNH and field, which is being developed by Perenco and
Perenco the option to expand the FLNG unit’s SNH. The partners pipe gas from the field to an
production capacity by another 400,000 tpy onshore treatment facility for processing before
beginning in 2023. This option will remain in delivering it to the FLNG vessel, which operates
place until the term of the current contract ends under an agreement that generates about $40mn
in 2026, it said. per quarter in tolling revenues.™

P10 www. NEWSBASE .com Week 30 30•July•2021