Fortuna FLNG offtake goes to Gunvor

Swiss trading company Gunvor has been nominated as the preferred LNG buyer for offtake from the Ophir Energy-operated Fortuna FLNG project in Equatorial Guinea.

The Ministry of Mines and Hydrocarbons, Ophir, OneLNG, a joint venture between Golar LNG and Schlumberger, and La Compania Nacional De Petroleos De Guinea Ecuatorial (GEPetrol) have agreed with Gunvor the principal commercial terms subject to finalising a sale and purchase agreement for the offtake ahead of the final investment decision.

Gunvor has committed to taking the full contract capacity of the Gandria FLNG vessel of 2.2 million mt per annum, which will be purchased on a Brent-linked, FOB basis for a 10 year term, London-based Ophir said in a statement.

The contract structure allows flexibility for up to 1.1 million mt per annum of the Fortuna FLNG capacity to be marketed on an alternate basis.

Consequently the agreement gives the Fortuna partners, alongside the State of Equatorial Guinea, the potential to sell volumes to higher priced gas markets in Africa and beyond, whilst retaining a share in the profits of such sales.

With a preferred LNG buyer now nominated, the last significant milestone remaining prior to the project’s final investment decision is the completion of project funding, with FID remaining on track for later in 2017, the statement reads.

“We thank those parties that participated in the competitive tender process for the offtake and welcome Gunvor to the Fortuna FLNG project. Gunvor’s involvement is a further addition to a strong partnership along the Fortuna value chain. Our focus is now on completing the financing package and debt facility. With Golar’s sister vessel, the Hilli, nearing completion and with Petronas FLNG having recently delivered commercial cargoes, FLNG is now entering the mainstream,” said Nick Cooper, Chief Executive of Ophir.