Golar Agrees 15-year LNG Import Terminal Deal for Jamaica

Norwegian shipping company Golar LNG Partners will deploy a floating storage and regasification unit (FSRU) to Jamaica for up to 15 years from the fourth quarter of 2018, according to industry sources.

 

An FSRU allows for the import of liquefied natural gas.

 

On Jan. 19 the company said in a statement it executed a 15-year charter for an FSRU with a energy and logistics company in the Atlantic Basin, without giving further details.

 

Sources said Golar LNG Partners entered into the deal with U.S.-based New Fortress Energy, which has supplied Jamaica's power utility JPS with LNG since October 2016, using one of Golar's LNG tankers.

 

In its Jan. 19 statement, Golar said it can nominate either the Golar Spirit or the Golar Freeze FSRU provided they meet the project's technical requirements.

 

The charter is expected to generate annual operating income before depreciation and amortisation of $18-$22 million, Golar said. 

 

An option allows the charterer to terminate the deal after three years if certain FSRU throughput targets have not been met, it said.

 

Golar LNG Partners did not immediately return a request to comment.