Page 12 - GLNG Week 14

GLNG
NEWS IN BRIEF
GLNG
AFRICA
FLNG Gimi force majeure claim
Gimi MS, a subsidiary of Golar LNG, received written notification of a force majeure claim from BP Mauritania Investments under the lease and operate agreement, dated February 26, 2019, between the company and BP, relating to the Greater Tortue Ahmeyim project.
The notice received from BP claims that due to the recent outbreak of the novel coronavirus (COVID-19) around the globe, BP is not able to be ready to receive the floating liquefied natural gas facility GIMI on the target connection date in 2022.
BP estimates at this stage that the consequential delay caused by the claimed force majeure event is in the order of one year and that it is not currently possible to mitigate or shorten this delay. Golar has asked BP to clarify how a force majeure event discovered as recently as the end of March 2020 could immediately impact the schedule by an estimated one year.
Based on the information received as of today the company is engaging in clarification and an active dialogue with BP to establish the duration of the delay and the extent to which this has been caused by the claimed force majeure event. However, in anticipation of a potential delay, the company has commenced discussions with its main building contractor, Keppel Shipyard, to re-schedule activities
in order to reduce and reprofile its capital spending commitments for 2020 and 2021. GIMI MS, April 07, 2020
AMERICAS
Teekay LNG Partners announces new LNG charters and refinancing of $225mn unsecured credit facility
Teekay LNG Partners announced today that it has secured new fixed-rate charters for two of its 52%-owned LNG carriers, a 12-month charter on the Arwa Spirit and an eight- month charter on the Methane Spirit, both of which are expected to commence upon completion and in direct continuation of their existing contracts in May and July 2020, respectively.
In addition, Teekay LNG has successfully refinanced its existing $225mn unsecured revolving credit facility, which was scheduled to mature in November 2020, with a new two- year facility of the same amount and pricing consistent with the previous facility of LIBOR + 140 bps.
“As we are an integral part of the world’s LNG supply chain, all of our vessels have continued to operate as expected under their existing fixed-rate contracts and I am pleased to report that, with these two new fixed-rate contracts, our LNG fleet is now 98% fixed though 2020 and 94% fixed for 2021,” commented Mark Kremin, president and CEO of Teekay Gas Group Ltd. “The partnership expects to continue to benefit from its long-term contracted cash flow, and continue allocating capital in a manner that focuses on delevering and strengthening its balance sheet, while also returning capital to
unitholders, including a 32% increase in our cash distribution to an annualised amount of $1.00 per common unit effective for the first quarter of 2020.”
“We are also grateful for the continued strong support we receive from our bank group, as represented by the refinancing and closing of our $225mn unsecured revolving credit facility with 13 major international banks, which provides the Partnership with
a strong consolidated liquidity position
of approximately $400mn and increased financial flexibility with which to add value to our long-term unitholders.”
TEEKAY LNG PARTNERS,
LR chosen for LNG Canada
export terminal project in
Kitimat
LR has signed a 55-month LNG contract
to support LNG Canada with the safe construction and delivery of a new liquefied natural gas (LNG) liquefaction plant and export terminal located at a site in Kitimat, BC, Canada.
The contract is for third party verification and Canadian Registration Number (CRN) services that LR will perform during the pre- commissioning, commissioning and start-up phases of the project. With this tender award, LR becomes the only third-party verifier working on Canadian LNG projects.
LR’s third party verification services will ensure that individual components have been constructed and tested in accordance with the quality assurance programme expected by Liquefied Natural Gas Facility Regulation (LNGFR). This will see LR verifying the project quality assurance programme for the design and procurement phases, followed by the Inspection Test Plans and Inspection Test Records during the project construction and commissioning phases.
LR will also validate Technical Integrity Verification plans for engineering, fabrication and commissioning, and the Change Management Plan (CMP) for the design
and construction phases. Throughout this contract, LR will provide additional audit and engineering services at site to verify
the compliance of safety critical equipment and systems, such as gas fired equipment (incinerator and gas turbines), across the entire facility. This will align with audit activities performed by British Columbia Oil and Gas Commission (BCOGC).
For the CRN services, LR will use a British Columbia Alternative Safety Approach (ASA) to demonstrate compliance with the power,
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Week 14 10•April•2020