Golar LNG’s fourth quarter fleet TCE is expected to be above $50,000 per day, with utilisation above 80% based on fixtures to date and prevailing spot market conditions.
The company said that its shipping strategy continued to prioritise longer term utilisation over short-term opportunities, but remained adequately exposed to seasonal and other potential upside by virtue of some index linked charters within the portfolio.
olar has fixed around two thirds of available 2021 revenue days through a combination of fixed and floating rate charters. Following ’Golar Tundra's’ departure from the shipyard in October, no further drydockings are planned until 2023.
Looking at the FLNG market, Golar said that it will continue to focus on ’Gimi’ productivity and to manage the re-schedule progress and safe working under COVID-19 restrictions. The project’s fourth drydocking period is scheduled to commence in early December, 2020.
As for ‘Hilli Episeyo’, the scheduled maintenance shutdown in October will not result in any reduction from the unit’s 4Q20 earnings.
Work is continuing with Golar’s counterparts, Perenco and SNH, on potential solutions to increase the unit’s throughput.
Golar will continue to develop its portfolio of FLNG opportunities featuring both its 3.5 and 5 mill tonnes per annum Mark III newbuilding FLNG designs as direct competitors to traditional large-scale onshore liquefaction facilities, in addition to marketing the Mark I solution.
The project portfolio has grown considerably over the last few months and it is interesting to observe an increasing number of requests from oil majors seeking lower cost production solutions, Golar said.
The lack of FIDs in the LNG business in recent years, combined with strong demand, will result in higher LNG prices that will likely generate additional interest in Golar's FLNG solutions.
Following the recent signing of the collaboration agreement with B&V, Golar will jointly work on solutions to further reduce the carbon footprint of the FLNGs and for a potential development of floating ammonia production.
As for Hygo Energy Transition, the Hygo board will consider the timing for a potential re-launch of the IPO, which will be driven by market conditions, ongoing business operations and ongoing business development activity.
Hygo expects to take a FID on the Barcarena terminal before the end of this year based on the expressed interest for off-take volumes from industrial users. FID on the associated 605 MW power station is expected to follow around six months after the terminal’s FID.
In addition, Hygo remains actively involved in the development of several other terminal opportunities in Brazil on a competitive basis, including those in Suape and Bahia.
Although postponed by recent events, Golar said that it remained committed to the separation of Hygo and an IPO remains the primary route to achieve this, subject to board approval, ongoing business operations and business development activity.
When concluded, the separation will represent the first step towards re-organising and simplifying Golar’s structure.