Golar makes move for Floating Liquefied Natural Gas Production

Golar makes move for Floating Liquefied Natural Gas Production Vessel 
HAMILTON, BERMUDA -- (Marketwire) -- 11/01/12 --  Golar  LNG Ltd
("Golar"  or "the Company") announced today that  it has reached
agreement  for the development of the Company's first floating
liquefied natural
gas  vessel (FLNGV).  The  agreement is with  Keppel
Shipyard Limited ("Keppel")
and is based on the conversion of
existing Moss LNG carriers of which Golar owns
three  potential 
candidates.   Golar  has  already successfully converted three
other
Moss carriers into Floating Storage and Regasification Units
("FSRU's") of
which Keppel has converted two. 
Use  of the  Company's existing  Moss LNG  vessels, proven  topside
liquefaction
technology  together with the appointment of Keppel to
undertake the engineering
and  conversion enables Golar's FLNGV's  to
facilitate the efficient development
of gas monetization
opportunities when it comes to cost and schedule. The target
gas 
supply  for  these  units  will  be  pipeline  quality gas, lean
associated
reserves and, potentially, lean gas from otherwise
stranded fields. The floating
solution  gives customers  increased
flexibility,  quicker development times and
the unique ability to
develop reserves that are currently uneconomic. It further
gives 
them an opportunity to capitalize on the large global gas spreads and
the
attractive economics associated with gas as an energy resource. 
The  first FLNGV will  have a capacity  of up to  2 million tonnes
per annum and
will  utilize  the  existing  125,000 cubic  meters  of
LNG storage on board the
carrier.   Keppel will start the FEED study 
in November and detailed design and
engineering  is expected to be 
concluded around mid-2013 when vessel  conversion
is  expected  to 
start.  The  first  unit  will  be  developed  through
several
construction  stages  in  order  to  accommodate  customer 
requirements  and is
expected  to be  ready for  production by  Q1
2015. Golar  retains the option to
convert two additional vessels
with Keppel under the same agreement. The Company
sees  its 
partnership  with  an  experienced  shipyard  and  a production
plant
provider  with significant LNG  experience as valuable  for
minimizing technical
risk in the project. 
This  project rep
resents  the next  phase in  Golar's strategy  of
expanding its
presence  within  the  LNG  industry.  The  Company 
aims to offer its customers
unique,   flexible   and   highly 
economical  solutions,  thereby  capturing a
substantially  greater
share of the overall LNG commodity trade value. The Board
anticipates
 that  the  first  unit  can  be  financed  through a combination
of
existing  cash, future cash flow, further drop downs and new debt
facilities and
presently do not envisage any need for additional
equity. 
Golar's  Chairman John Fredriksen said, "Golar helped  to open up the
LNG market
through the introduction of floating receiving terminals
which have opened a lot
of  new markets for LNG.  Our FLNGV's will be
able to provide a fast-track, cost
effective solution for developing
new LNG production capacity.   We believe this
technology  will be
extremely  attractive to companies  looking to develop their
natural 
gas assets and we are  actively pursuing multiple opportunities.  It
is
Golar's  intention to market the solution for  field developments
as well as for
direct   production  from  existing  pipeline 
infrastructure.  The  Board sees
particular  opportunities in the 
African region, where  gas prices remain low.
Significantly,  large 
quantities  of  gas  are  currently  being flared and
the
infrastructure  doesn't naturally support large  land based LNG
investments. The
Board  is excited about the new business line and
sees massive opportunities for
growth in the next five to ten years". 


 
Golar LNG Limited
Hamilton, Bermuda
October 31 2012

 
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Source: Golar LNG via Thomson Reuters ONE 
[HUG#1654394] 
Investor relations enquiries:
Golar Management Limited
+ 44 207 063 7900
Brian Tienzo
Stuart Buchanan