Golar LNG Partners LP has secured a 15-year deal to charter one of its FSRU (floating storage and regasification unit) in the Atlantic Basin. The partnership will provide either the Golar Spirit or the Golar Freeze to service the contract and expects to begin work in the fourth quarter of 2018.
The vessel is expected to remain in service for up to 15 years without drydock and will therefore undergo drydocking as well as some minor modifications prior to service commencement.
The capital element of the charter rate will vary according to demand for regasification throughput but includes a cap and a floor and so is expected to generate annual operating income of between approximately $18m and $22m.
The charter includes an option after three years to terminate the contract and seek an alternative regasification solution, but only in the event that certain throughput targets have not been met.
Additionally, Golar Partners will have a matching right to provide such alternative solution. The charter also includes a five-year extension option.
Golar Partners CEO, Graham Robjohns said: “securing this contract demonstrates the underlying value of the Partnership’s existing assets, adds significant term and revenue backlog whilst simultaneously reducing re-contracting risk. It also reflects the growing interest in smaller, cost competitive FSRUs that can facilitate the opening of niche markets previously considered uneconomic for LNG.”
For more information visit www.golarlngpartners.com
22nd Jan 2018