Gazprom Linked to Cameroon FLNG Offtake Deal

  • Business & Finance

Gazprom Marketing & Trading, a subsidiary of Russian gas conglomerate Gazprom, has reportedly taken a 1.2 million tonne-stake in Golar LNG’s floating liquefied natural gas (FLNG) project in Cameron, Interfax news agency said citing sources familiar with the matter.

Under the offtake agreement between the two parties, up to $8 per million British thermal units of natural gas is expected to be delivered, as explained by Wells Fargo Securities.

Neither of the parties have confirmed the deal officially yet that is believed to be the first-ever offtake agreement from a 3rd party FLNG asset.

Golar’s Cameroon FLNG project secured the final approval by all parties of the Gas Convention in September. This final investment decision commits the project to a targeted start date for commissioning of second quarter, 2017.

Golar, Perenco and SNH have for the past two years been developing a floating liquefied natural gas export project located near shore off the coast of Cameroon situated in an area of benign sea states and utilizing Golar’s floating liquefaction technology (GoFLNG). The project is based on the allocation of 500 Bcf of natural gas reserves from offshore Kribi fields, which will be exported to global markets via the GoFLNG facility “Hilli”, now under construction at Keppel Shipyard in Singapore.

It is anticipated that the allocated reserves will be produced at a rate of 1.2 million tons of LNG per annum, representing approximately 50% of the vessel’s nameplate production capacity, over an approximate eight year period. It is expected that production will commence in Q2, 2017.

World Maritime News Staff

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