Golar, NFE wrap up FLNG Hilli deal

New Fortress Energy and Golar LNG have completed the previously announced deal regarding the FLNG Hilli located offshore Cameroon’s Kribi.

Tor Olav Troim-led Golar announced the closing of the deal, effective January 1, 2023, in a statement issued on Wednesday.

“In return for NFE’s 50 percent common unit holding in Golar Hilli LLC, Golar has transferred its remaining 4.1 million NFE shares to NFE, paid NFE $100 million in cash, and assumed approximately $323 million of FLNG Hilli debt,” it said.

The two firms revealed this agreement on February 6 and they expected to close in the first half of this year.

Golar acquired the 50 percent interest in trains 1 and 2 of the FLNG Hilli.

The 2.4 mtpa floating LNG producer has in total four trains installed onboard.

Golar’s partners in the project are oil and gas company Perenco and Cameroon’s national oil firm Societe Nationale des Hydrocarbures (SNH).

FLNG developments

Both NFE and Golar are now focusing on their FLNG business.

Wes Edens-led NFE is expecting to start producing liquefied natural gas on its first floating LNG production unit off Mexico’s Altamira in July this year.

NFE is currently working on five floating LNG production units offshore Mexico and the US using its “Fast LNG” liquefaction design that incorporates modular, midsize liquefaction technology with jack up rigs or similar offshore infrastructure.

On the other hand, Golar recently secured an option to acquire a 148,000-cbm Moss-type LNG carrier which it aims to convert to a floating LNG producer.

Golar said in November last year it ordered long-lead items for its third FLNG conversion project on the back of a growing opportunity set for new FLNG growth projects.

Besides Hilli, Golar’s 2.5 mtpa Gimi FLNG is currently under conversion at Singapore’s Keppel Shipyard and is about 92 percent technically complete.

Golar expects the unit to start serving BP’s Tortue FLNG project under a 20-year charter deal in the fourth quarter of 2023.

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