Golar LNG Ltd. has announced today that it has signed a long-term charter agreement for one of its liquefied natural gas (LNG) newbuildings with BG Group plc.
The 138,000 cubic metres capacity ship is presently under construction at Daewoo of Korea and is due to be delivered in March 2003. The charter is for a fixed
20-year period.
As part of this transaction, the existing contractual arrangements between BG Group and Golar LNG will be simplified. These contractual arrangements, which began in 1999, secured charters over four 125,000 cubic metres vessels - Golar Freeze, Khannur, Hilli and Gimi. The new arrangement, will benefit Golar LNG with improved cash flow in the near-term, and benefit BG Group by reductions in rates in the longer term.
Martin Houston, Executive Vice President, BG Group plc, said: "This agreement secures capacity for BG Group to meet its projected liquefied natural gas shipping requirements in 2003 and beyond. BG Group is developing several proposed LNG import and export projects around the world and our shipping fleet is central to this strategy. Today's development strengthens our alliance with Golar LNG and we look forward to the long-term benefits that the deal will bring to both parties."
Tor Olav Trøim, Chief Executive Officer, Golar LNG Limited, said, "Golar LNG is delighted to have been able to conclude another long-term deal. We see BG Group as a pivotal player in the LNG industry and one of our key clients in the future. The newbuilding charter secures a stable long-term cash flow for Golar LNG and creates a good financial fundament to develop the company further."
Poten & Partners acted as intermediary on the transaction. Golar's prospectus dated July 9th indicated that Golar could have some dispute with Poten. Mr. Trøim commented that "following a review of the facts, Golar is satisfied that Poten acted properly in all respects".