In its interim results for the period that ended in June 2023, Golar LNG said it signed heads of terms with Nigeria National Petroleum Corporation for the joint development of gas fields using floating liquefied natural gas (FLNG), expanding on the Memorandum of Understanding signed in April 2023.
A part of Golar LNG’s statement read thus:
“Strong progress with the potential deployment of Golar’s FLNG vessels to various gas fields in Nigeria has been made since signing the MOU with NNPC in April. Under a further head of terms signed with NNPC on August 1, 2023, Golar and NNPC have agreed on an integrated contractual framework for the joint development of specific gas fields toward potential FLNG projects.”
The Backstory
In April 2023, Nairametrics reported that NNPC Limited signed an MoU with Golar LNG to build a floating liquefied natural gas plant in Nigeria to increase the country’s domestic gas utilization and enhance gas export.
Before the signing, the NNPC Limited said it is committed to improving Nigeria’s energy security through the enhancement of the country’s natural gas resources.
At the time, the NNPCL statement on the signing read thus;
“In furtherance of its efforts to deepen Nigeria’s domestic gas utilization and enhance gas export, Nigerian National Petroleum Company Limited has signed a Memorandum of Understanding (MoU) with a Norwegian company, Golar LNG (GLNG), to build a Floating Liquified Natural Gas (LNG) plant in Nigeria.
“Group CEO, of NNPCL and CEO of Golar LNG, Mr. Karl Fredrik Staubo, signed the agreement on behalf of their respective companies during a brief ceremony held at the NNPC Towers in Abuja.
“Golar LNG is one of the world’s largest independent owners and operators of marine-based LNG midstream infrastructure active in the liquefaction, transportation, and regasification of natural gas.”
Golar LNG is a reputable company with over 50 years of experience in developing marine LNG infrastructure and has a strong balance sheet position, low leverage, and strong cash flow from operations to expand the FLNG business.
What you should know:
According to Golar LNG, material-technical and commercial progress has been made on the deal with NNPCL. Note that the memorandum has a 5-year duration.
In its results statement, Golar LNG said that as of March 31, 2023, its total cash was $1 billion, comprising $889 million of cash and cash equivalents and $113 million of restricted cash.
