Gazprom Marketing & Trading Singapore (GM&TS) has signed a deal to buy 1.2 million tonnes per year all of the liquefied natural gas (LNG) from Cameroon FLNG project to increase its LNG portfolio.
For the past two years, Golar Hilli and Golar Cameroon (GOLAR), Perenco Cameroon (Percam) and Société Nationale des Hydrocarbures (SNH) have been developing the floating liquefied natural gas (FLNG) export plant using Golar’s floating liquefaction technology (GoFLNG).
The eight-year FLNG gas project is based on the allocation of 500bcf of natural gas reserves to be supplied by SNH and Percam from the Sanaga Sud and Ebome fields.
Golar will own and operate the project through its ‘Hilli’ FLNG vessel, which is under conversion at the Keppel Shipyard in Singapore at present.
First LNG deliveries from the plant are expected to begin during the second half of 2017.
Reuters reported that GM&TS may sell the LNG into Atlantic markets, including Latin America.
In October 2015, the Cameroon FLNG project obtained approval and signature of the binding tolling term sheet confirming the commercial terms for the Golar Hilli vessel.
In the first full year of operation, the Golar Cameroon FLNG project is expected to deliver an EBITDA in the range of $170m to $300m for Golar.