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Golar LNG Limited $GLNG confirmed first production of LNG has successfully commenced from Hilli Episeyo offshore Cameroon and that the Golar Gandria has been removed from layup and is now at Keppel Shipyard in Singapore.

Golar FLNG Hilli

Golar LNG carrier Hilli floating liquefaction vessel (FLNGV). in Singapore Habour

This is just the world's second floating LNG project. The trading arm of Russia’s Gazprom has purchased the entire 1.2 million ton per annum output from Golar’s FLNG platform, the Hilli Episeyo, for eight years.


Reaction: Golar LNG Limited NASDAQ: $GLNG

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The update was provided to add to the recent Q42017 Earnings Presentation. The deal was agreed in late 2015 between Golar, Gazprom Marketing and Trading, Cameroon’s state-run Societe Nationale des Hydrocarbures and Perenco Cameroon.

Golar LNG gave no indication of when the Hilli would achieve commercial LNG production or begin exports. First LNG deliveries were initially targeted for the second half of 2017.

The first ever FLNG project came on stream in Malaysia last year, developed by Petronas, but the project has operated at a fraction of its production capacity


FLNG Hilli Episeyo arrived in Cameroon in late November 2017. Customs clearance, positioning, mooring hook-up and connection to the riser and umbilicals followed shortly thereafter. In early December 2017, a Notice of Readiness, which triggers the commissioning process, was tendered to Perenco and SNH. A ship-to-ship transfer of cool down LNG with the Golar Bear was completed in mid-December 2017, followed by the introduction of feed gas from the onshore processing plant.

Full commissioning of the gas treatment systems is now substantially complete and they are running satisfactorily. Commissioning of the refrigerant trains continued through to February 2018 and first LNG production commenced on March 11 2018. Although Golar reiterates the importance of taking the time it needs to safely commission the vessel, at this time final commissioning, followed by acceptance testing, remains on track for mid-April 2018. Vessel acceptance will trigger the final drawdown against the $960 million CSSCL facility. Commissioning hire at a reduced toll rate began to accrue from January 4, 2018: $9.8 million has now been received in respect of January 2018 and a further $11.1 million will shortly be billed in respect of February 2018.

Source: Criterion Research, Golar LNG

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