Golar LNG Ltd. is pleased to announce that the company has signed a firm Heads of Agreement, (HOA), with the Italian offshore and contracting company Saipem SPA for the joint marketing and development of Floating Regasification Terminals, (FRT's) for the Italian gas market. The concept is based on the conversion of a Moss type LNG carrier, either existing or new build.
Saipem acquired in 2001 Moss Maritime from the Kvaerner Group, and Moss Maritime holds the license for the Moss LNG ship design.
The activities will be managed through a dedicated JV, where Saipem will handle the engineering and technical aspects of the FRT's. Golar will contribute with the sourcing of suitable LNG carriers as well as maritime expertise. The partners are currently holding discussions with potential clients, and the initial interest in the market is positive.
Executive Vice President Sveinung Støhle says in a comment: " We are very pleased with this agreement with Saipem, since it shows that the strategy we have defined for diversifying Golar's activities into other parts of the LNG chain starts to give results. In Saipem we get a strong and experienced industrial partner, being the world's leading offshore engineering and contracting company. Saipem's favorable position in the Italian market combined with Golar's mature LNG experience and availability of tonnage creates a strong partnership".
The Italian gas market is the 3rd largest in Europe, with current consumption of around 75 billion sm3/year. The consumption is expected to exceed 100 billion sm3 by 2010. Until now the gas has come almost exclusively from pipeline supplies, as it has been very difficult to get approvals for building land based LNG terminals in the last years.
However, this is now in the process of changing, and currently there are a number of land based, as well as floating LNG terminals being planned for the Italian market. This increased focus on LNG to cover a major part of the future growth of the gas market is mainly the result of the ongoing deregulation of the European gas markets, as well as the supply flexibility offered by LNG as compared to pipeline supplies.
Golar LNG is the world's largest independent owner and operator of LNG vessels, with a fleet of 6 owned LNG carriers and 4 under management for NGSCO in Abu Dhabi. The company has an additional 4 new ships under construction, for deliveries in 2003 and 2004.
Bermuda, 03.06.02