Golar LNG informed that the company has reached the material commercial terms and conditions with Perenco for the development of a floating liquefied natural gas export project in Cameroon.
Golar LNG said in a statement released on Tuesday that this deal follows the heads of agreement signed in December 2014 with Societe Nationale de Hydrocarbures and Perenco Cameroon regarding the project.
The tolling agreement which defines the material commercial terms and conditions for the project is now subject to finalisation with SNH.
Similarly, the midstream gas convention setting out the regulatory and fiscal regime governing the FLNG operations in Cameroon is being progressed in parallel with the tolling agreement and is also now subject to finalisation with the government. It is anticipated that final approval by all parties for the tolling agreement and the midstream gas convention will take place late Q3, 2015, the company said.
Golar, Perenco and SNH have for the past two years been developing a floating liquefied natural gas export project located near shore off the coast of Cameroon situated in an area of benign sea states and utilizing Golar’s floating liquefaction technology. The project is based on the allocation of 500 Bcf of natural gas reserves from offshore Kribi fields, which will be exported to global markets via the GoFLNG facility Hilli, now under construction at the Keppel Shipyard in Singapore.
Golar will provide the liquefaction facilities and services under a tolling agreement to SNH and Perenco as parties of the upstream joint venture. It is anticipated that the allocated reserves will be produced at a rate of 1.2 million tonnes of LNG per annum, representing approximately 50% of the vessel’s nameplate production capacity, over an approximate eight-year period. It is expected that production will commence in Q2, 2017.