Golar picks up Tortue FLNG deal with BP

Tortue development/Image courtesy of BPTortue development (Image courtesy of BP)

The Bermuda-based LNG shipping giant Golar LNG has entered into a lease and operating agreement with BP for the charter of an FLNG unit to service the Greater Tortue Ahmeyim project located offshore Mauritania and Senegal.

Golar LNG said on Tuesday that the LOA was awarded to Gimi MS Corporation, a newly incorporated subsidiary of the company, for the charter of an FLNG unit named Gimi for 20 years.

The company initially received a limited notice from BP to proceed for the provision of a floating LNG producing unit for BP’s West African project back in December 2018.

Expected to begin production in 2022, the Gimi FLNG will liquify gas as part of the first phase of the Greater Tortue Ahmeyim project and be located at a nearshore hub located on the Mauritania and Senegal maritime border.

The vessel is designed to produce an average of approximately 2.5 million tonnes of LNG per annum, using the Black & Veatch “Prico” liquefaction process, with the total gas resources in the field estimated to be around 15 trillion cubic feet.

LNG carrier Gimi has been relocated from layup to Keppel Shipyard in Singapore where conversion works are expected to commence soon,” the company said.

Keppel and Golar have previously partnered on the FLNG Hilli Episeyo, the world’s first FLNG conversion project, which has begun commercial operations in June 2018 and consistently despatched two LNG cargoes each month.

Construction of FLNG Gimi is expected to cost approximately $1.3 billion, excluding financing costs. Golar is also in the final stages of receiving an underwritten credit commitment for a $700 million long-term financing facility from a syndicate of international banks that will be available during construction.

Golar CEO Iain Ross said: “This landmark 20-year agreement with BP, which is Golar’s second FLNG tolling agreement, is the culmination of a lot of hard work and commitment from the project and commercial teams that commenced late 2017.

The potential of Golar’s floating LNG solution was reinforced by FLNG Hilli Episeyo’s proof of concept, heads of terms were agreed with BP and its partners in April 2018 and work has been ongoing via the previously reported limited notice to proceed.

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