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Golar LNG to provide FSRU to WAGL

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LNG Industry,

Golar LNG Ltd has announced that it has signed a contract to provide floating storage and regasification unit (FSRU) services to West African Gas Ltd (WAGL). This will support WAGL’s Ghanaian LNG import operations. The contract will initially last for 5 years, but has the option of being extended for an additional 5 years.

WAGL is a joint venture (JV), which is owned by a subsidiary of Nigerian National Petroleum Corp. (NNPC), which owns 60%, and a subsidiary of Sahara Energy Resource Ltd, which owns the remaining 40%. The JV is in the process of developing an LNG import terminal on the coast of Ghana at the port of Tema. It is planned to officially start-up in the second quarter of 2016. A new jetty is being constructed by WAGL at the port, in which the FSRU will be moored.

Following some minor amendments to the unit, the 170 000 m3 FSRU Golar Tundra will deliver to WAGL in Ghana. In the first year of operation, the earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to be approximately US$44 million.

Gary Smith, the CEO of Golar LNG, said: “Ghana represents an exciting new business opportunity for Golar. West Africa is becoming an increasingly important region for our business and we are proud to be jointly developing Sub Saharan Africa's first FSRU in partnership with WAGL. We are very pleased that WAGL has entrusted Golar with their FSRU services, which again demonstrates our established reputation as a leading operator of floating midstream LNG assets. As this is a five year charter, the vessel will be offered to Golar LNG Partners L.P. to acquire providing for another potential acquisition with a new and particularly strong counterparty.”

The Managing Director of WAGL, Umar Ajiya, added that the JV represents economic growth and power sector development in Ghana. He claimed: “This landmark achievement is the first of its kind in Sub Saharan Africa and strategically positions Ghana to be an energy hub. By contracting with the best-in-class companies like Golar LNG, WAGL has set clear standards of the highest order and reaffirmed its belief in the sub region as a stable environment for doing business.

“Both NNPC and Sahara remain committed to contributing to projects geared towards socio-economic advancement in all locations they operate in through sustainable partnerships, smart investments and good governance.”

Edited from press release by David Rowlands

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