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Wednesday, 24 December 2014

Golar signs Heads of Agreement for the development of a Floating Liquefaction export project in Cameroon

Golar LNG Ltd ("Golar") today announced the signing of a Heads of Agreement (the "HOA") with Societe Nationale de Hydrocarbures ("SNH") and Perenco Cameroon ("Perenco") for the development of a floating liquefied natural gas export project (the "Project") located 20km off the coast of Cameroon and utilizing Golar's floating liquefaction technology (GoFLNG). 

The HOA is premised 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 Golar 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 owners of the upstream joint venture who also intend to produce LPG's for the local market in association with the Project.   It is anticipated that the allocated reserves will be produced at the rate of some 1.2 million tonnes of LNG per annum over an approximate eight year period. 

It is expected that during the first half of 2015 definitive commercial agreements will be executed and necessary licenses and approvals secured for the production, liquefaction, and export of the reserves, and that production will commence in the first half of 2017.   The Project will be the first floating LNG export project in Africa and will see Cameroon joining the small number of LNG exporting nations.  

Golar is one of the world's largest independent owners and operators of LNG carriers with over 40 years of industry experience. Golar's innovation delivered the world's first Floating Storage and Regasification Units (FSRU) based on the conversion of existing LNG carriers. The project in Cameroon now demonstrates Golar's latest strategic move to extend its business model further upstream by deploying its floating liquefaction technology (GoFLNG). The objective is to become the industry's leading integrated midstream LNG services provider, supporting resource owners, gas producers and gas consumers.


  1. Replies
    1. do you reckon that the FLNG strategy will have negative effect or impact to keppel - why dim light?

    2. No negative impact. Not sure is there bright future. LOL!

  2. With oil price down, expect upcoming LNG projects. This may be new future for Singapore O&G listed company.

    1. Hi CW,
      LNG future for Sg as a whole. Kep should benefit but not now, longer term. BW offshore and all relevant FPSO co here will also venture in LNG eventually. Now R&D n prepare... Few years later then blossom???


    2. According to this news :-

      Share of FLNG construction contract orders value :- Korea 54%, Japan 22%, Singapore’s 16%, China 8%.

  3. Exmar NV has secured an order for a second floating LNG (FLNG) Liquefaction Unit, which will be constructed at Wison Offshore & Marine’s shipyard in Nantong, China. The FLNG unit will have a liquefaction capacity of 0.6 million tpy and 20 000 m3 of LNG storage

    Wison will be responsible for the turnkey engineering, procurement, construction, transportation, installation and commissioning (EPCIC) of the FLNG unit.

    This second FLNG order will enable Exmar to offer a reliable and cost-efficient LNG production facility to its customers compared to a land-based solution. The FLNG is scheduled to be completed in 2017.

    Nicolas Saverys, CEO of Exmar, said: "It is clear that lower oil and gas prices will continue to boost demand for cost-efficient and fast-track FLNG solutions over land-based liquefaction terminals. We continue to see strong growth in the FLNG market. Thanks to our first-mover advantage we are actively working on seven FLNG projects around the world. With this second FLNG contract we take another key step towards further strengthening our unique position in the FLNG market."

    Wison's CEO, Matt Cui, added: "It is again an honour to receive this order from our strategic partner Exmar, with whom we have already developed the Caribbean FLNG that is currently under construction. The Caribbean FLNG will come online off the Colombian coast in the second half of 2015."

  4. It's just an industry cycle of upturn and downturn.
    Also, Keppel has long history ... being there, done that.

    Below is just an extract from Tough Men Bold Visions :-

    "........It was not all smooth sailing for the shipbuilding and shiprepair industry
    in the 70s. The mid to late 70s presented a turbulent patch. The oil crisis
    caused by the Middle East war towards the end of 1973 caused a worldwide
    recession. Nearly 30 million dwt of tankers were "mothballed", and new
    orders were cancelled in 1975. In the same speech at Sembawang Shipyard
    in 1975 during which he declared that the largest tanker afloat could now be
    repaired in Singapore, Prime Minister Lee Kuan Yew also warned of the perils of
    high wages. Singapore would be priced out of the shiprepair market if the wage
    bills and repair costs failed to remain lower than those of comparably located
    competitors, he said.

    By the end of that year, shipyards in Singapore were undercutting one
    another in a price war, even as Japanese and European yards quoted very low
    prices. The smaller yards had to cut down on work days and reduce overtime.
    The turnover in the industry might be $980 million, but a substantial portion of
    the revenue had come from orders made before the oil crisis.
    The trough, though, was not unwelcome by the larger yards. They could
    now consolidate by tightening production, cutting down on waste, and utilising
    the workers more efficiently. This was also the time for them to diversify by going
    for smaller vessels and conversion jobs.

    When the upturn came towards the end of the decade, the shipyards
    were leaner and fitter. The first two years of the 80s saw spectacular performances:
    the turnover was $1.9 billion in 1980, and $2.4 billion in 1981. But the
    government was not going to allow the industry to take any more chances, so
    subject as it was to the winds and tides of the outside world. In 1982, a taskforce
    formed by the Economic Development Board and made up of both EDB and
    Sasar officials, drew up a master plan to consolidate the marine industry so that
    it would stay buoyant through the up-and-down cycles of the business. Among
    its recommendations were:

    - Fewer but larger shipyards as a result of closures and mergers

    - Upgraded mechanisation and increase in use of computers

    - Better work procedures and methods for higher productivity

    - Increase in research and development

    - Capability in marine engineering software skills, eg. in designing ships and manufacturing ship equipment

    -Plans to attract more Singaporeans to work in the yards.

    The taskforce's deliberations also followed the Government's move in the
    late 70s to restructure the economy, to phase out foreign workers and to usher
    in a high-wage, high-skilled economy. During its heydays in the 70s, the shiprepair
    industry had as many as 20 per cent foreign workers. ......" ... blah blah blah

    So, here we go again?
    Or this time it is different?


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