Golar provides commercial update
Published by Lydia Woellwarth,
Golar is pleased to announce that it has entered into swap arrangements to hedge part of its TTF price exposure for the incremental 0.2 million tpy train 3 production for 1Q22 at a TTF price of US$28/million Btu. With TTF gas prices averaging US$28/million Btu during 1Q22, the additional capacity utilisation is expected to realise US$21.2 million of Net Income to Golar for the quarter. This implies a gross tolling fee of US$11.4/million Btu for the incremental production. For each US$1.00/million Btu change in TTF, Net Income realised by Golar will increase (or decrease) by US$0.4 million for unhedged volumes during 1Q22.
Golar is also realising increased Net Income from the Brent link component of production from trains 1 and 2. Golar’s realised share of Net Income increases by US$2.7 million for every US$1/bbl that Brent is above US$60/bbl. Assuming the current oil price of approximately US$83/bbl for 2022, Net Income realised from the oil derivative will be approximately US$15.5 million for 1Q22 or US$62 million for the full year.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14102021/golar-provides-commercial-update/
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