FLNG Gimi arrives at GTA field offshore Mauritania/Senegal
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Insights
The arrival of FLNG Gimi at the GTA field signifies a crucial phase in the development of the liquefied natural gas (LNG) infrastructure between Golar LNG Limited and bp. This event is a significant step towards the commencement of LNG production in the region. In the context of the global energy market, the addition of new LNG capacities can influence supply dynamics, potentially affecting LNG pricing and contract terms. Stakeholders should monitor the progress of this project closely, as it could lead to increased revenue streams for Golar and contribute to diversifying the global energy supply mix.
Moreover, the 20-year commitment mentioned indicates a long-term partnership and stable future cash flows for Golar, which is a positive signal for investors. However, the project's success hinges on the seamless integration of the FLNG facility and the timely commencement of production. Any delays or operational issues could impact the projected financial outcomes. It is also important to consider geopolitical risks, as the project spans two countries with their respective regulatory and political landscapes.
The logistical aspect of maneuvering the FLNG Gimi to its berth and connecting it to the feed gas pipeline is a complex maritime operation with significant implications for the project timeline. The successful mooring of such a large and sophisticated vessel is a testament to Golar's operational capabilities. However, the mention of the FLNG Gimi proceeding to moor offshore Tenerife while awaiting completion of preparatory activities suggests potential delays. Investors should be aware that such delays, while often factored into project timelines, can lead to cost overruns and impact the financial viability of the project.
It's also crucial to consider the technical and environmental risks associated with FLNG operations. FLNG technology is relatively new and its long-term operational reliability is still being established. Any unforeseen technical challenges could have financial repercussions and affect the projected output of LNG.
The integration of the FLNG Gimi into the GTA hub is anticipated to have a substantial influence on LNG markets. As a commodity, LNG plays a pivotal role in the energy sector and new production facilities can alter the supply landscape. The project's success could lead to increased LNG availability, which might result in price adjustments on a regional or global scale, depending on the volume of production and export strategies.
Investors should consider the potential impact on LNG futures and the implications for related industries such as shipping and utilities. The long-term partnership between Golar and bp suggests confidence in the stability of LNG demand. However, market volatility, driven by factors such as fluctuating energy demands and the transition to renewable energy sources, could affect the profitability of LNG projects.
Golar LNG Limited (“Golar” or the “Company”) announces that FLNG Gimi arrived at the GTA field offshore Mauritania and Senegal on January 10, 2024. Golar has notified bp of FLNG Gimi’s arrival. Following completion of all preparatory activities FLNG Gimi will be maneuvered to her berth at the hub and for her subsequent connection to the feed gas pipeline. Golar and bp have agreed that FLNG Gimi will proceed to moor offshore Tenerife while awaiting completion of the necessary preparatory activities.
Golar CEO Karl-Fredrik Staubo commented: “Golar is pleased to see that the FLNG Gimi has arrived at the GTA field offshore Mauritania and Senegal, her home for the next 20 years. We are excited to integrate the Golar FLNG Facility with the GTA hub, and starting the next phase of our long-term relationship with bp and the GTA partners into LNG production.”
Rahman Rahmanov, bp’s vice president projects for Mauritania & Senegal commented: “This is a major step forward for overall delivery of the GTA1 project in Mauritania and Senegal. Safely achieving this milestone is a result of great teamwork.”
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended). All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.
You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Golar LNG Limited undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law.
Hamilton, Bermuda
January 10, 2024
Enquiries:
Golar Management Limited: + 44 207 063 7900
Stuart Buchanan
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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