Belgian LNG and LPG carrier owner and operator Exmar NV said that a liquefaction and storage deal for the delivery of a floating liquefaction unit (FLNG) has been terminated by a Canada-based oil and gas company Pacific Exploration and Production (PEP).
Under the contract, which was signed in March 2012, Exmar was supposed to provide an FLNG unit for a project in Colombia during a period of 15 years.
The deal was signed for a vessel with a capacity of some 0.5 million tons per annum and a storage volume of 16,100 m³.
According to Exmar, the reason behind the termination is that the liquefaction of LNG in Colombia is no longer profitable due to a change in domestic natural gas market in the country and in international LNG market.
The oil and gas company will now pay a termination fee to Exmar in monthly installments from March 2016 until June 2017.
Exmar said that it is now trying to find work for its FLNG facility as the company is in talks with several counterparts.
The vessel in question is currently under construction at China’s Wison shipyard in Nantong and is expected to be delivered in the second quarter of 2016.