Midstream provider Golar LNG will start LNG production from its first floating LNG (FLNG) production unit Hilli Episeyo off Cameroon “in days”.
Speaking in a results briefing new chief executive Iain Ross said Hilli Episeyo, which will start production from two trains totalling 1.2-million tonnes per annum, feed gas has been introduced from the onshore processing plant and full commissioning of the gas treatment systems is now substantially complete.
“Commissioning of the refrigerant trains are still ongoing, and we anticipate commercial production of LNG in the next few days,” he said.
Ross said it had taken longer to get to this stage than initially planned and the aim now was to achieve commercial acceptance in mid-April 2018.
After this period Golar is liable for $100,000 per day in late delivery payments.
On its second FLNG project, Ross said Golar is bringing the laid up 126,000-cbm Gandria (built 1977) into Keppel Shipyard to start early conversion works.
The ship is earmarked to serve as the floating liquefaction unit for the Fortuna FLNG project off Equatorial Guinea.
He said financing for Fortuna remains outstanding, but Golar believes the start-up of LNG production from Hilli Episeyo will help with these discussions.
Ross revealed Golar is “investigating options to restructure its shipping operations.”
He refused to be drawn by analysts on what this might entail, but suggested in future Golar is “going to be investing preferentially in FLNG and integrated FSRU and power projects rather than pure shipping".
Viking back to work
On the company’s existing fleet, Ross said Golar has pulled its steam turbine, 140,000-cbm Golar Viking (built 2005) out of lay-up during the last month.
He said rate rises for modern vessels also pulled up levels for steam ships, adding that shipping returns are expected to improve further in 2018.
The new chief said Golar believes there will be a structural shortage of LNG carriers over the next two to three years amounting to around 30-45 vessels.
On floating storage and regasification units (FSRUs) Ross said the 170,000-cbm newbuilding Golar Nanook will be redelivered to the Sergipe power plant site in the third quarter.
He said one of Golar Power’s available conversion candidates is committed to an FSRU opportunity that could be advanced in mid-April and discussions are “reasonably advanced” for an FSRU that will use one of Golar Partners steam ships for a conversion project.
We continue to believe that the provision of integrated FSRU and power solutions offers us greater upside than standard – standalone FSRU deals,” he said, highlighting opportunities across Latin America, West Africa and the Indian subcontinent.
