Golar LNG Limited has entered into swap arrangements to hedge around 50% of its exposure to Dutch Title Transfer Facility (TTF) linked production for 2024.
The TTF price was $51.2 per MMBtu, the energy equivalent to a Brent oil price of about $300 per bbl.
The hedging transaction secures cash flow visibility for part of Golar’s 2024 distributable adjusted EBITDA at an attractive historic level, whilst retaining exposure to the possibility of higher prices, the company explained.
Based on TTF gas prices of $51.2 per MMBtu, and current Brent forward prices for 2024 at $86 per bbl, Golar’s share of annual distributable ’Hilli’ adjusted EBITDA for 2024 is expected to be about $294 mill (fixed tariff of $67 mill, Brent oil linked earnings of $73 mill, and TTF linked earnings of around $154 mill).
Golar’s share of expected 2024 annual debt service for the FLNG ’Hilli’s’ contractual debt is about $47 mill (debt amortisation of around $29 mill and interest of about $18 mill), the company said.
