Golar LNG Orders Two Ships for $400m

Marinelink
Wednesday, February 15, 2012
Golar LNG Limited announced details of an expansion to its fleet, saying that it has entered into two newbuilding contracts for 162,000 cu. m. new buildings with fixed priced options for a further two with the Korean shipbuilder Hyundai Samho Heavy Industries Co., Ltd. One vessel will deliver during the third quarter of 2014 and the other will deliver during the fourth quarter of 2014.
The total cost of the two vessels is slightly above $400 million. As with Golar's existing newbuilding orders, the vessels will be delivered with tri-fuel diesel electric engines. The new engines will be more fuel efficient and will also have lower emission levels of pollutants and CO2.
The Board of Golar for months considered several options for expanding, including growth through acquisitions as well as organic growth. Particular emphasis has been given to valuations, operating efficiencies and timing of such an expansion. The Board sees significant strength in the present development in the LNG shipping market. Global LNG trade is estimated to increase by in the region of 8%-10 % per year over the next few years with further upside if US LNG exports materialize.
The newbuild route was chosen as the company has in the recent months been in discussions with several yards with respect to increasing the size of the company's new building program. The fact that ship newbuilding prices in general are under some pressure and also that the new tri-fuel engines are significantly cheaper to operate than the previous generation steam turbine ships makes newbuildings attractive. The Company believes that it is important to get new capacity delivered as early as possible in order to position Golar for the anticipated large LNG volume increases expected to come from Australia and possibly the US in 2015 - 2016.
Chairman John Fredriksen says in a comment: "We are excited to see the rapid developments in the LNG market. We clearly see LNG as one of the key parts in the future energy supply chain. The increased flexibility provided by floating production and regas solutions has transformed the LNG industry and made it significantly more competitive versus other energy types. The large global spreads in gas prices, the high growth in trade, and the tight availability of shipping gives this investment a solid foundation."
Golar is now positioned with a total of 13 modern LNG carriers including 2 FSRU's available for trading in the period 2012- 2014. In addition the company has several older vessels available.  
 
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

MSC Cruises Advance Onboard Wi-Fi System

MSC Cruises has started a fleet-wide optimization installed by Marlink to improve shipboard VSAT (Very Small Aperture Terminal) connectivity. MSC Cruises said it

New Training for Man Overboard Response

Falling overboard is a life-threatening emergency, not only for the person in question but also for those involved in their rescue. Every step in the rescue process

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Shipbuilding

An Efficient Addition to a Strong Fleet

Cvitanovic towing of Belle Chasse, Louisiana has taken delivery of a fourth vessel for its fleet of highly efficient Lugger-style tugs. Built at the Rodriguez yard in Bayou LaBatre,

Ferus Smit to Launch Newbuild Bulk Carrier

Ferus Smit will launch newbuild general bulk cargo vessel Arklow Brave on Friday, December 12, in Westerbroek.   Arklow Brave is the fifth vessel in a series

Dutch Yards May Need to Rethink Contract Structures

Rotterdam-based law firm AKD said a recent decision of the Dutch courts means that shipyards in The Netherlands may no longer be able to rely on the right to retain

LNG

Interferry Welcomes IMO Decision on LNG Fuel Tank Placement

Interferry has welcomed a decision at last week’s IMO Maritime Safety Committee meeting (MSC94) setting out rules for the location of fuel tanks on LNG-powered ships,

HHI to Build FSRU for Höegh LNG

A new Floating Storage and Regasification Unit (FSRU) will be built by the Korean shipbuilding Company Hyundai Heavy Industries (HHI). This FSRU will be the fifth

BG Group's Queensland Curtis LNG to Ship First Cargo

BG Group is set to ship the first cargo of liquefied natural gas from its flagship gas project Queensland Curtis LNG on Dec. 20, a source familiar with the matter told Reuters.

 
 
Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1213 sec (8 req/sec)