SNH, Perenco sanction Kribi FLNG project offshore Cameroon

Golar LNG says it has received final approval for its Cameroon Floating Liquefied Natural Gas (FLNG) project, due to be commissioned in 2Q 2017.

At a ceremony in Yaoundé, Cameroon’s state oil and gas company Société Nationale des Hydrocarbures (SNH), Perenco Cameroon, Golar Hilli Corp., and Golar Cameroon executed a binding gas convention.

This endorses installation and operation of the GoFLNG vessel in Cameroon waters to receive supplies from the offshore Kribi fields.

SNH should also approve the tolling agreement shortly. This establishes the terms under which Golar will provide liquefaction, storage, and offloading services to SNH and Perenco as upstream joint venture partners.

Golar is now in a position to draw down up to $700 million in finance to fund the cost of converting the Hilli to an FLNG vessel, currently in progress at the Keppel Shipyard in Singapore.

All three upstream parties have been working for the past two years on this nearshore export project in an area of benign sea states. Golar says 500 billion FCFA will be allocated over eight years from the Kribi fields - equivalent to 1.2 MMt/yr of LNG - which will be exported to global markets via the Hilli.