FLEX Says Gulf LNG Project FID Delayed (Papua New Guinea)

FLEX LNG announced a revised target to achieve LNG FPSO Final Investment Decision (FID) for the Gulf LNG project within 1Q 2012.

Since signing a comprehensive Framework Agreement with InterOil Corporation, Pacific LNG Operations and Liquid Niugini Gas Ltd in April 2011, the parties have been targeting a mid December 2011 FID date. The company said today that during this period project specific FEED for the LNG FPSO has been completed, and both Samsung Heavy Industries (SHI) and FLEX LNG are ready to proceed to enter the execution phase of the project.

The Framework Agreement has expired, but the Parties will continue to work together with the aim of achieving a successful outcome for all stakeholders in the project, including the state of Papua New Guinea and the Gulf Province.

Commenting on the parties’ decision to target FID in 1Q 2012, Chief Executive Officer of FLEX LNG Management Ltd, Philip Fjeld stated: “The Gulf LNG Project has made great progress to date with project specific FEED for the LNG FPSO already completed, and both SHI and FLEX LNG are ready to move into project execution phase as soon as the project’s major sponsors and the PNG government are ready. FLEX LNG is looking forward to continuing to work closely with its partners towards an FID in 1Q 2012.”

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LNG World News Staff, December 22, 2011