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Golar provides commercial update

Published by , Editor
LNG Industry,


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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