Golar Announces West Java FSRU Contract

Golar LNG Energy on Wednesday announced that the long term Floating Storage and Regasification (FSRU) and Mooring time charter with PT Nusantara Regas, a joint venture between Pertamina and PGN ("West Java FSRU Project "), has been concluded and was executed on April 20, 2011.

The contract duration is for an initial term of approximately eleven years with automatic conditional extension options up to 2025. The West Java FSRU Project contract value for the initial period is approximately US $500 million.

Since the execution of the Letter of Intent in November 2010, Golar has ordered the long lead items, carried out conversion engineering and the vessel nominated for this contract, "KHANNUR" has been positioned to Singapore where the physical conversion works are now underway at Jurong Shipyard in Singapore.

Upon completion of conversion and delivery in the first quarter of 2012, "KHANNUR" will be permanently moored at a purpose built mooring structure located 15 km offshore West Java. The converted "KHANNUR" will be capable of storing approximately 125,000 cubic meters of LNG and delivering up to 500 MMSCFD (~3.8 MTA) of regasified LNG via Nusantara Regas's pipeline to fuel for two Power Plants owned and operated by Perusahaan Listrik Negara ("PLN"), Indonesia's national power company.

The Golar group has already completed three FSRU conversions over the last three years. The FSRU for the West Java FSRU Project will be similar in design to the latest of these three projects, the "GOLAR FREEZE", which recently delivered under a long term contract in Dubai. The West Java FSRU Project will be Indonesia's first LNG regasification terminal and significantly, the first FSRU project in Asia. Golar is currently bidding on PGN's FSRU, Mooring and Pipeline tender to be located offshore Medan, Sumatra.

Golar Energy's FSRU technology offers reliable and cost effective solutions to fast track the import and regasification of LNG.

Golar Energy's CEO, Doug Arnell said "We are very proud to have executed this foundation agreement for the West Java project. We also wish to express our appreciation to the Nusantara Regas team for their dedication in finalizing the contract. We believe this contract for Indonesia and Asia's first FSRU will be the catalyst for the development of additional floating LNG projects within the Asia Pacific region. Indonesia has announced plans for more FSRU projects to include small scale LNG projects and we look forward to having the opportunity to deliver more fast track and low cost solutions."
Source: Golar Energy