Golar LNG Limited: Jordan FSRU Time Charter Party Execution
Golar LNG Limited ("Golar") is pleased to announce that a firm Floating Storage and Regasification (FSRU) time charter with the Government of the Hashemite Kingdom of Jordan, represented by the Ministry of Energy and Mineral Resources ("the Government") has been concluded and was executed on July 31, 2013.
The FSRU Golar Eskimo will be moored at a purpose built structure that is to be constructed by the Aqaba Development Corporation off the Red Sea port of Aqaba. Capable of storing 160,000 cubic metres of LNG and delivering up to 500 MMSCFD with a peaking capacity of 750 MMSCFD, the FSRU will connect to the Jordan Gas Transmission Pipeline that delivers natural gas to power plants throughout the Kingdom.
Earnings under the ten year contract are due to commence during the first quarter of 2015. Annual EBITDA contribution to Golar for the first five years of the contract will be approximately USD 46 million and approximately USD 43 million per year for the second five year term. The Government has the option to terminate the time charter after year five, subject to payment of an early termination fee.
Golar's CEO, Doug Arnell said "We are delighted to have executed this foundation agreement for the Hashemite Kingdom of Jordan. In so doing, we look forward to assisting Jordan to ensure security of gas supplies. In line with our omnibus agreement the vessel will be offered for sale to Golar LNG Partners. Such a transaction will, if concluded, release significant cash in Golar LNG and generate growth and increased dividend distribution potential for Golar LNG Partners. The contract reconfirms Golar's leading position as a provider of FSRU services."
July 31, 2013
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning future events and Golar's operations, performance and financial condition. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe", "anticipate", "expect", "estimate", "project", "will be", "will continue", "will likely result", "plan", "intend" or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond Golar's control. Actual results may differ materially from those expressed or implied by such forward-looking statements.