Golar contracts for second floating liquefaction vessel

Golar LNG Ltd. has executed and made effective agreements for conversion of the 125,000-cubic-meter LNG carrier Golar Gimi to a floating liquefaction facility (FLNGV). The primary contract for the second FLNGV was entered into with Singapore's Keppel Shipyard Ltd.

Keppel has simultaneously entered into a sub-contract with global engineering, procurement, and construction company Black & Veatch, which will provide its licensed PRICO technology, perform detailed engineering and process design, specify and procure topside equipment, and provide commissioning support for the FLNGV topsides and liquefaction process. This second suite of agreements closely mirrors those for the conversion of the Golar Hilli executed earlier this year.

Coincident with the execution of these agreements, long-lead orders for primary equipment (i.e., gas turbines and cold boxes) will be immediately released. Golar anticipates that the conversion vessel Gimi will be delivered to the Keppel shipyard in Singapore as early as the second quarter of 2015, following which the conversion project will begin with the renewal of key systems onboard the vessel while the topsides are manufactured.

Golan expects the FLNGV conversion to be completed and delivered in approximately 33 months. Additionally, to retain flexibility in the rollout of Golar's floating LNG strategy (GoFLNG), the company has secured certain beneficial cancellation provisions, which, if exercised prior to November 2015, will allow the termination of the contracts and the recovery of previous milestone payments, less a set cancellation fee.

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