Floating LNG (FLNG)-focused Golar LNG is considering fresh opportunities for redeploying its Cameroon-based FLNG unit Hilli.
In a first-quarter results statement, Golar said it had seen “a significant increase in interest and momentum for re-contracting alternatives for FLNG Hilli” in recent months.
“Several promising projects that have more attractive economics than the current contract are now being discussed,” the company said.
Golar said the LNG floater — which has a total production capacity of 2.4 million tonnes per annum but of which only 1.4 mtpa is currently being utilised — has an annual revenue potential of more than $1bn based on current LNG forward curves.
“Concluding a new charter for FLNG Hilli is, therefore, a commercial priority for the company,” it said.
Golar, which recently signed an MOU with Nigerian National Petroleum Corp for the joint development of FLNG opportunities in Nigeria, said its LNG carrier to FLNG conversion for BP, the FLNG Gimi, is not 94% technically complete.
But the company revealed that the unit’s departure from Singapore has been put back from the first half of 2023 into the third quarter.
It said this is to allow for “vessel completion and testing and a greater proportion of commissioning work to be performed” at the yard.
Option declared
Golar said the delay is not expected to impact first feed gas on the Tortue project in Mauritania and Senegal.
The LNG shipowner confirmed the sale of its FLNG conversion candidate, the 126,000-cbm Gandria (built 1977), which TradeWinds reported earlier as sold for green recycling. It said the sale will net the company $15m when it closes in the second half of 2023.
The company also said it has now declared its option to acquire the Moss-type vessel it had earlier referenced as buying and finally confirmed this as TMS Cardiff Gas’ 148,000-cbm Fuji LNG (built 2004).
Golar said the ship will be targeted for conversion into one of its 3.5-mtpa MKII FLNG units.
Of the $73m price balance for Fuji LNG, the company said $11m will be paid this quarter with the remainder in early 2024 when the ship is due to be delivered.
Golar said the focus is now on a yard engineering procurement and construction contract and financing.
The company said a final investment decision on the MKII project is linked to “securing attractive finance and further visibility on a charter” on which it has made “strong progress” this quarter.
Significant turnaround
Golar reported a net loss of $102m for the first quarter of 2023, a significant turnaround on a net profit of $345.2m in the same three months of 2022.
The company said the figure included non-cash mark-to-market charges of $188m relating to the Brent oil-linked component of FLNG Hilli’s fees, listed equity securities and interest rate swaps.
Total operating revenues for the company nudged higher for the quarter up at $74m from $73m in the corresponding period a year earlier.
Golar said it earned $7m during the quarter from fees earned relating to its agreement with Italy’s Snam to assist in the dry-docking, site commissioning and hook-up of the 170,000-cbm Golar Tundra (built 2015). But it said costs associated with this amounted to $18m.
