Golar affiliates plan arrangement to develop import terminal hubs

Tuesday, 08 September 2020
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LNG Journal editor:

Golar LNG Partners and Golar Power have entered into a cooperation agreement whereby the parties intend to work together to develop floating LNG terminal hubs.

The terms and structure of the commercial cooperation will be worked on a project-by-project basis given the customized nature of each potential terminal which will be floating storage and regasification units (FSRUs).

Leverage

As part of the agreement, Golar Power and Golar LNG Partners, which is listed on Nasdaq, have agreed to terminate the existing omnibus agreement between the entities.

“We are excited to formalize commercial cooperation with Golar Power, to leverage the expertise of the Golar Power team to develop FSRU terminals and parcel regasification demand,” said Karl Fredrik Staubo, Chief Executive of Golar LNG Partners.

“This agreement will, alongside normal FSRU tendering activity, increase the Partnership’s re-contracting options, and provide an opportunity to potentially earn higher returns than standard FSRU contracts,” added Staubo.

The Golar LNG Partners fleet comprises 10 vessels, including conventional carriers, FSRUs and the floating liquefaction hull the “Golar Hilli Episeyo” operating offshore Cameroon.

“The Partnership’s assets provide an opportunity to fast-track global terminal opportunities that should benefit both parties,” stated the CEO.

Golar Power is a joint venture partnership comprising Golar LNG and US equity fund, Stonepeak Infrastructure Partners and its activities are centred on northeast Brazil, including a project in Sergipe, the smallest Brazilian state.

Golar Power has also signed an accord with the Brazilian state government of Pernambuco to develop an LNG import terminal in the Port of Suape.

The 50-50 venture in July 2020 also signed an agreement with Argentinian firm Galileo Technologies to expand its small-scale LNG activities in South America and focusing firstly on Brazil.

The deal with Galileo will enable Golar Power to develop a bio-LNG business based on biomethane.

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