Golar LNG noticed to buy and convert Croatian FSRU

Project developers of the Croatian FSRU facility, LNG Hrvatska have issued Golar LNG with a notice to proceed with the conversion and subsequent purchase of 2005-built LNG carrier Golar Viking. 

Image courtesy of Golar LNG

Conversion capex will largely be funded by stage payments from LNG Hrvatska under the agreement, Golar LNG said in its statement.

Golar LNG said that after a robust vetting process, Hudong has been selected as the yard to undertake the requisite conversion works.

CSSC Leasing, an affiliate company of the yard, is expected to provide both conversion financing and bridging finance for the current vessel facility between yard entry, expected in 1Q 2020, and sale to LNG Hrvatska for €159.6 million ($180.6 million) upon completion.

Golar will also receive an annual fee to operate the FSRU for 10-years, the company said in a statement.

LNG Croatia, the state-owned company has sanctioned the construction of the floating liquefied natural gas terminal on the Island of Krk in February.