Indonesia: Golar Energy Announces LOI Execution for West Java FSRU Project
- Business & Finance
Further to the Golar LNG Energy (“Golar Energy”) announcement on October 12, 2012 that Golar Energy had been selected by PT Nusantara Regas, a joint venture between Pertamina and PGN, as the successful bidder for the provision of the West Java Floating Storage Regasification Terminal (“West Java FSRU Project”), the Board of Golar Energy now announces that the parties have further agreed and executed today a Letter of Intent (“LOI”).
The LOI anticipates entry into a long term time charter for the lease of a floating storage and regasification unit (“FSRU”) and associated mooring. The duration of the contract is until the end of 2022 and further provides automatic extension options to 2025, subject to certain contract terms. The terms of the LOI enable Golar Energy to commence the engineering, design and procurement process for the project. The parties have now begun discussions on finalizing the FSRU Time Charter Agreement.
The West Java FSRU Project contract value is approximately US $500 million. The Golar group has already completed three FSRU conversions over the last three years. The FSRU for the West Java FSRU Project will be similar in design to the latest of these three projects, the Golar Freeze, recently delivered to Dubai.
The West Java FSRU Project will be Indonesia’s first LNG regasifcation terminal and represents the first FSRU project in Asia. Golar Energy’s FSRU technology offers a reliable and cost effective solution to fast track the import and regasification of LNG.
Golar Energy’s CEO, Oscar Spieler said “We are very pleased with the LOI execution as it signifies parties agreement to commence the procurement of long lead items and execution of detailed engineering thereby commencing the FSRU project execution phase for this critical national energy project. We are very appreciative of the confidence placed in us and support provided by Nusantara Regas to move forward on our fourth FSRU project.”
Source: Golar Energy, November 4, 2010;