Golar LNG Partners Secures New FSRU Contract

Golar LNG Partners has agreed a 15-year charter for a floating storage and regasification unit (FSRU) in the Atlantic Basin with an undisclosed energy company.

Under the agreement, the Partnership has the flexibility to nominate either the Golar Spirit or the Golar Freeze to service the contract, provided that the nominated FSRU satisfies certain technical specifications ahead of project start-up, which is expected in the fourth quarter of 2018.

The FSRU will reportedly be deployed to Jamaica under an agreement with US-based New Fortress Energy, Reuters said citing industry sources.

The vessel is expected to remain in service for up to 15 years without drydock and will therefore undergo drydocking as well as some minor modifications prior to service commencement, Golar LNG Partners said, adding that the deal is expected to generate annual operating income before depreciation and amortisation of between USD 18 and USD 22 million.

The charter includes an option after 3 years for the charterer to terminate the contract and seek an alternative regasification solution, but only in the event that certain throughput targets have not been met.

Additionally, Golar Partners will have a matching right to provide such alternative solution. The charter also includes a 5-year extension option.

“Securing this contract demonstrates the underlying value of the Partnership’s existing assets, adds significant term and revenue backlog whilst simultaneously reducing re-contracting risk. It also reflects the growing interest in smaller, cost competitive FSRUs that can facilitate the opening of niche markets previously considered uneconomic for LNG,” Graham Robjohns, Golar Partners CEO, said.

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