Golar LNG, the carrier operator owned by Norwegian shipping tycoon John Fredriksen, has signed an option to provide vessels for one of the first Canadian LNG liquefaction and export plants being developed on the Pacific coast near Kitimat.
Golar said it entered into a 90-day Vessel Charter Option Agreement with LNG Partners, based in Houston, Texas, which is developing the Douglas Channel LNG project to export cargoes to the Asia-Pacific.
The Norwegian-operated company has the biggest batch of additional LNG carriers for the global fleet under construction in South Korea.
It has 11 newbuild LNG carriers on order with Samsung Heavy Industries and Hyundai Samho Heavy Indutries with the delivery of the initial vessel planned for September 2013.
The Norwegian-operated company will "prospectively provide two of its newbuild LNG carriers under long-term charter agreements beginning in the first quarter of 2015.
The option is being provided by Golar to LNG Partners to facilitate deliveries of LNG production from the Douglas Channel venture on the coast of British Columbia, to DES LNG buyers, whereby the cargo transaction involves delivery to a named import terminal.
In the event LNG Partners and its DES LNG buyers are successful in securing LNG off-take from the Douglas Channel project through participation in the nomination procedures of the plant operating company BC LNG Export Co-Operative, then the parties will enter into full charter agreements under standard industry terms, Golar said.
The Douglas Channel Project, in which LNG Partners is an equity owner, is a proposed liquefaction facility on the west bank of the Douglas Channel, within the District of Kitimat and on the traditional territory of the Haisla Nation native tribe.
The project, through BC LNG Export Co-Operative, has initiated a request for nominations for both feed-gas supply and LNG off-take.
Under the terms of the initial request for nominations, BC LNG Co-Op members must provide nominations on or before October 19, 2012.
In consideration for this option agreement with LNG Partners, Golar will receive certain preferential rights to participate with LNG Partners in the Douglas Channel LNG project, either through investment in infrastructure, provision of suitable export vessels, or LNG off-take.
John Fredriksen, Chairman of Golar, said of the option deal: "We are excited to support the Douglas Channel LNG project in its efforts to reach final investment decision and believe that the venture has a great opportunity of becoming North America's first LNG export project in over 40 years."
