ANTWERP, Belgium – Exmar NV and Pacific Exploration and Production (PEP, formerly Pacific Rubiales) have agreed to terminate a liquefaction and storage agreement associated with the Caribbean FLNG (CFLNG) project.
CFLNG was slated to be moored offshore the Colombian Caribbean coast in the La Creciente gas field.
The agreement was originally executed in March 2012 for a term of 15 years from delivery of the floating liquefaction unit, which Exmar says has capacity of approximately 0.5 mtpa of LNG and a storage volume of 16,100 cu m.
Since the execution of the tolling agreement the domestic natural gas market in Colombia and international LNG market have changed substantially making the liquefaction of LNG in Colombia no longer economic for PEP, Exmar said in its statement.
The two companies’ settlement agreement stipulates a termination fee payable by PEP to Exmar in monthly installments from March 2016 until June 2017. It also makes the CFLNG available for other projects around the world. Exmar is actively negotiating new employment with several counterparts.
The CFLNG is expected to be delivered in 2Q 2016 from the Wison shipyard in Nantong, China. In Januaray, Exmar announced that it had begun commissioning the vessel.