Golar LNG Limited (Golar) announced 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 July 31.
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 5.65 million cubic feet (160,000 cubic meters) of liquefied natural gas and delivering up to 500 million standard cubic feet per day with a peaking capacity of 750 million standard cubic feet per day, the FSRU will connect to the Jordan Gas Transmission Pipeline that delivers natural gas to power plants throughout the Kingdom.
Earnings under the 10 year contract are due to commence during the first quarter of 2015. Annual earnings before interest, taxes, depreciation and amortization contribution to Golar for the first 5 years of the contract will be approximately $46 million and approximately $43 million per year for the second 5 year term. The Government has the option to terminate the time charter after year 5, 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."
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