FLNG Hilli Episeyo now in full commercial operation
Published by Will Owen,
Golar LNG Limited has confirmed that FLNG Hilli Episeyo has been accepted under its Liquefaction Tolling Agreement with Perenco Cameroon SA and Societe Nationale Des Hydrocarbures and is now in full commercial operation.
The commissioning tests included the requirement to produce a set quantity of LNG in a period of 16 days of continuous production from minimum 2 trains at a level of 7500 m3 per day on average.
The commercial tolling rate commencing will immediately add approximately US$164 million in EBITDA of base tolling income per year plus an additional US$45 million operating cash flow per year based on the oil price linked element of the contract (assuming that Brent remains at an average of US$75/bbl).
As a consequence of the commencement of commercial operations Golar is now able to draw on the US$960 million lease financing facility that will replace the existing loan. It is estimated that a minimum of approximately US$140 million in additional free cash will be released from this facility after meeting maximum remaining capital costs and net of minority interests.
The drop down of 50% of the base tolling income to Golar LNG Partners L.P. is expected to be concluded shortly. The additional added contribution of approximately US$82 million in effective EBITDA and effective EBITDA backlog of US$650million, given the 8 year contract term, will significantly strengthening the MLP's financial position and supporting solid distribution going forward.
FLNG Hilli Episeyo is the world's first FLNG vessel that has been developed as a conversion project from an LNG carrier. This conversion approach adds value through its accelerated time to first LNG production and cost competitive pricing.
The commencement of commercial operations of Hilli Episeyo took place in less than 4 years after speculative contracts were signed with Keppel Shipyard. The project cost is expected to be approximately US$70 million under budget.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22062018/flng-hilli-episeyo-now-in-full-commercial-operation/
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