OSLO, Norway, Nov. 19, 2001 (PRIMEZONE) -- Golar LNG Ltd. (OSE:GOL) is pleased to announce that the company has signed an agreement with US engineering company Merlin Production for a Feasibility Study covering a floating regas terminal with special focus for the US market.
The study includes the conversion of the 125.000 m3 LNG vessel the "Golar Freeze" into a floating regasification unit, specifically looking at the following areas:
-- Technical modifications on the Golar Freeze -- Selection of the best possible site for such a terminal -- Ship/shore connections -- Regulatory approvals for land and offshore installations
The study is expected to take approximately 2 months and confirms Golar LNGs strategy to develop the company further into the LNG logistical chain.
Executive Vice President Sveinung Stohle said in a comment: " Through using the Golar Freeze, which will become available after finishing the BG charter party in April 2003, we will effectively be able to develop a new terminal almost two years ahead of any competitor. The unit could be in place and in production by the end of 2003. We feel that an offshore-based terminal solves a significant number of the security and enviromental issues that recently have been raised regarding land based sites in the US. A floating terminal offers the unique flexibility that not only can it be removed at a later stage, but also that it can be connected to the gas grid at the most suitable place, thereby saving transportation costs and giving the best possible price for the gas. Golar LNG will do the initial study alone but will consider to bring in industrial partner(s) at a later stage. The preliminary economical calculations show that the project has robust profitability. The final profitability will depend on the cost of the conversion and the site which is selected."
Steve Meheen, CEO of Merlin Production, stated that, " Merlin is very pleased to carry out this work for Golar LNG, since we have developed the concepts needed to make this project work. We further know the US regulatory process very well, and feel comfortable that this project will meet all necessary permits and approvals."