Golar LNG agrees to amp up utilisation of Cameroon FLNG
LNG shipping company Golar has agreed with its partners Perenco and Société Nationale des Hydrocarbures (SNH) to increase utilisation of the FLNG Hilli Episeyo located offshore Kribi, Cameroon.
Starting with 2022, the capacity utilisation of FLNG Hilli Episeyo will increase by 200,000 tonnes of LNG. This will bring total utilisation in 2022 to 1.4 million tonnes.
Under the agreement, oil and gas company Perenco and Cameroon’s national oil firm SNH are granted an option to increase the capacity utilisation of the FLNG by up to 400,000 tonnes of LNG per year from January 2023 to the end of the current contract term in 2026.
This has the potential to increase total annual LNG production from Hilli to 1.6 million tonnes from January 2023 onwards. The option must be declared during the third quarter of 2022, Golar LNG states.
Perenco and SNH also intend to drill and appraise two or three incremental natural gas wells during 2021 and upgrade upstream facilities in 2022 to support further sustained increases in production from 2023 onward.
Karl Fredrik Staubo, Golar CEO, commented: “We are pleased to announce increased capacity utilization of our FLNG Hilli, unlocking embedded value to our shareholders by utilizing more of Hilli’s 2.4 million tonnes of liquefaction capacity. The innovative tolling fee arrangement delivers on our announced strategy to increase our upstream LNG and gas exposure. Today’s announcement is a further testimony to Hilli’s strong track record of 100 per cent commercial uptime since delivery in 2018 and will benefit all stakeholders involved in the project, as well as bringing us closer to our target to reach full capacity utilization of Hilli.”