Page 7 - DMEA Week 30 2021
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DMEA SUPPLY DMEA
Partners strike deal to increase
gas deliveries to Cameroon FLNG
AFRICA PERENCO (UK/France) and Société Nationale described the agreement as satisfactory.
des Hydrocarbures (SNH), the national oil com- “We are pleased to announce increased
pany (NOC) of Cameroon, have arranged to capacity utilisation of our FLNG Hilli, unlocking
increase the total volume of natural gas delivered embedded value to our shareholders by utilising
to the Hilli Episeyo, a floating LNG (FLNG) ves- more of Hilli’s 2.4mn tonnes [per year] of lique-
sel owned by Bermuda-registered Golar LNG. faction capacity,” he commented.
According to a statement from Golar LNG, “The innovative tolling fee arrangement
the parties struck a deal last week that provides delivers on our announced strategy to increase
for Perenco and SNH to deliver additional gas in our upstream LNG and gas exposure. Today’s
quantities sufficient to boost the FLNG’s produc- announcement is a further testimony to Hilli’s
tion capacity to 1.4mn tonnes per year in 2022. strong track record of 100% commercial uptime
This would represent a rise of 16.67% on the since delivery in 2018, and will benefit all stake-
vessel’s current capacity of 1.2mn tpy. holders involved in the project, as well as bring-
It would also require the use of the FLNG’s ing us closer to our target [of reaching] full
second production train, since the companies capacity utilisation of Hilli.”
have only been using the first of the vessel’s two The Hilli Episeyo is the first vessel in the
1.2mn tpy trains to date. world to be converted to an FLNG unit.
The statement noted that Perenco and SNH According to previous reports, it began its
intended to drill and appraise two or three new life as one of Golar LNG’s 125,000 cubic metre
incremental wells in 2021 and then upgrade tankers and was converted to an FLNG unit at
upstream production facilities in 2022. the Keppel shipyards in Singapore at a cost of
These operations will allow the produc- $1.2bn.
ers to sustain higher output levels into 2023 It is anchored near the Cameroonian port of
and beyond, it said. Additionally, Golar LNG Kribi and has been in operation since May 2018.
reported that the agreement between the par- The vessel liquefies gas from the Sanaga field,
ties gave SNH and Perenco the option to expand which is being developed by Perenco and SNH.
the FLNG unit’s production capacity by another The partners pipe gas from the field to an
400,000 tpy beginning in 2023. onshore treatment facility for processing before
This option will remain in place until the delivering it to the FLNG vessel, which operates
term of the current contract ends in 2026, it said. under an agreement that generates about $40mn
Karl Fredrik Staubo, the CEO of Golar LNG, per quarter in tolling revenues.
Week 30 29•July•2021 www. NEWSBASE .com P7
