2012-02-14 09:50:11 -
HAMILTON, BERMUDA -- (Marketwire) -- 02/14/12 -- Golar LNG Limited ("Golar" or the
"Company") today announced details of an
expansion to its fleet. The Board of Golar has in the recent months
considered
several options for expanding the Company's activities. This has included
growth
through acquisitions as well as organic growth. Particular emphasis has
been
given to valuations, operating efficiencies and timing of such an
expansion. The
Board sees significant strength in the present development in the LNG
shipping
market. Global LNG trade is estimated to increase by in the region of 8%-10
%
per year over the next few years with further upside if US LNG exports
materialise.
The Board has in the recent months been in discussions with several yards
with
respect to increasing the size of the Company's new building program. The
fact
that ship newbuilding prices in general are under some pressure and also
that
the new tri-fuel engines are significantly cheaper to operate than the
previous
generation steam turbine ships makes newbuildings attractive. The Company
believes that it is important to get new capacity delivered as early as
possible
in order to position Golar for the anticipated large LNG volume increases
expected to come from Australia and possibly the US in 2015 - 2016.
As a first part of this expansion Golar is pleased to announce that it has
entered into two newbuilding contracts for 162,000 m(3) new buildings with
fixed
priced options for a further two with the Korean shipbuilder Hyundai Samho
Heavy
Industries Co., Ltd. ("Hyundai") One vessel will deliver during the third
quarter of 2014 and the other will deliver during the fourth quarter of
2014.
The total cost of the two vessels is slightly above $400 million. As with
Golar's existing newbuilding orders, the vessels will be delivered with
tri-fuel
diesel electric engines. The new engines will be more fuel efficient and
will
also have lower emission levels of pollutants and CO(2).
Chairman John Fredriksen says in a comment: "We are excited to see the
rapid
developments in the LNG market. We clearly see LNG as one of the key parts
in
the future energy supply chain. The increased flexibility provided by
floating
production and regas solutions has transformed the LNG industry and made it
significantly more competitive versus other energy types. The large global
spreads in gas prices, the high growth in trade, and the tight availability
of
shipping gives this investment a solid foundation."
In addition to these reported contracts with Hyundai, Golar is in final
discussions with regards to further increasing the Company's new building
investment. This includes ordinary LNG carriers as well as ordering more
infrastructure type LNG assets. A final clarification about this should be
expected in the coming weeks.
Golar is now uniquely positioned with a total of 13 modern LNG carriers
including 2 FSRU's available for trading in the period 2012- 2014. In
addition
the company has several older vessels available. The Board will use the
existing
open position to seek strategic partnerships as well as creating a balanced
portfolio of short, medium and long term charters. With the large new
building
commitment at attractive prices; the current portfolio of long term
charters and
the corporate structure including Golar LNG Partners, the Company is well
positioned to serve its customers rapid expansion and to grow earnings
aggressively in the years the come. These latest orders confirm Golar's
commitment to be the worlds leading independent LNG shipping company.
Forward Looking Statements
The statements in this press release that are not historical facts may be
forward-looking statements. Such forward looking statements, based upon the
current beliefs and expectations of Golar's management, are subject to
risks and
uncertainties, which could cause actual results to differ from the forward
looking statements. The information set forth herein should be read in
light of
such risks. Golar does not assume any obligation to update the information
contained in this press release.
Golar LNG Limited
14 February, 2012
Hamilton, Bermuda
This information is subject of the disclosure requirements acc. to §5-
12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Golar LNG via Thomson Reuters ONE
[HUG#1585338]
Golar LNG Management Ltd
+44 207 063 7900
Brian Tienzo
Stuart Buchanan
