Golar: Cameroon FLNG tolling term sheet approved

Golar LNG said that its Cameroon FLNG project has received approval and signature of the binding tolling term sheet thereby confirming the commercial terms for the FLNG vessel Golar Hilli.

Cameroon’s state-owned oil and gas company Société Nationale des Hydrocarbures (SNH), Perenco Cameroon, and Golar are all parties to the executed agreement. Operations are scheduled to begin in Q2, 2017, Golar informed in a statement.

The tolling agreement terms facilitates the financing structure previously announced and will enable Golar to drawdown up to $700m from the facility to fund the ongoing conversion cost.

Golar will provide liquefaction, storage, and off-loading services to SNH and Perenco as upstream joint venture partners.

It is anticipated that the allocated 500 Bcf of natural gas reserves from offshore Kribi fields 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.

LNG World News Staff; Image: Keppel