Bumi Armada inks $300M FSU deal (Malta)
- Business & Finance
Malaysia-based Bumi Armada Berhad has entered into agreements with ElectroGas Malta Limited (EGM) for the conversion, supply and operations and maintenance of one floating storage unit (FSU).
The contracts were signed through Bumi Armada’s wholly owned subsidiaries Armada Floating Gas Storage Malta Ltd (AFG Storage) and Armada Floating Gas Services Malta Ltd (AFG Services).
The FSU is for the project relating to the construction and operation of an LNG receiving terminal located at Delimara, Malta.
The effective date of the contracts is April 13, 2015 and they are for a firm period of 18 years and 2 months with an expected aggregated value of approximately $300 million.
According to Bumi Armada’s Bursa Malaysia filing, AFG Storage has identified an LNG carrier which has been approved by EGM, as the conversion vessel for this project and its acquisition is currently in the process.
The FSU is expected to start operations in Delimara in 2016.
Commenting on the signing of the contracts, Chan Chee Beng, Executive Director and the Acting Chief Executive Officer of Bumi Armada said: “These contracts are a significant milestone for Bumi Armada’s new venture in the promising floating LNG business. The project is of national importance to Malta and we are proud of being entrusted to deliver a critical part of this project.”