Golar LNG signs firm accord to start cargo imports for Ghana

Tuesday, 10 November 2015

A joint venture is developing an LNG import project at the Ghanaian port of Tema with a planned start-up in the second quarter of 2016.

Infrastructure

The FSRU will be moored inside the port at a new jetty currently being built.

Golar, founded in Norway and now based in Hamilton, Bermuda, signed its accord with West African Gas Ltd. (WAGL), jointly owned by subsidiaries of the Nigerian National Petroleum Corp. with 60 percent and Sahara Energy Resource Ltd with 40 percent.

The contract will be for an initial period of five years with the option for WAGL to extend for a further five-year term.

Golar will deploy the 170,000 cubic metres capacity FSRU “Golar Tundra”, just completed by the Samsung Heavy Industries shipyard in South Korea.

The “Golar Tundra” will be delivered to Ghana following some minor modifications to the vessel in Singapore.

This is Golar’s third Western African LNG project, though the other two are for production rather than imports and regasification.

The company will provide a liquefaction hull for a Floating production venture in Equatorial Guinea being developed by UK company Ophir Energy.

Golar is also behind plans for LNG production in Cameroon. It is providing an FLNG hull as a liquefaction plant to be deployed over the Kribi natural gas field offshore Cameroon.

The company said it expected the Ghana deal alone to contribute $44 million per annum to earnings.

Its Chief Executive, Gary Smith, said the Ghana contract represented an exciting new business opportunity.

“West Africa is becoming an increasingly important region for our business and we are proud to be jointly developing sub-Saharan Africa's first FSRU in partnership with WAGL,” Smith said

“We are very pleased that WAGL has entrusted Golar with their FSRU services which again demonstrates our established reputation as a leading operator of floating midstream LNG assets,” he added.

“As this is a five-year charter, the vessel will be offered to Golar LNG Partners (its US affiliate) to acquire, providing for another potential acquisition with a new and particularly strong counterparty,” he added.