Golar LNG Partners bags long-term FSRU deal

Nasdaq-listed Golar LNG Partners, a limited partnership formed by Golar LNG, said it had executed a 15-year charter with an unnamed energy and logistics company to supply a floating storage and regasification unit (FSRU) and related services in the Atlantic Basin. 

The charter provides the Partnership with the flexibility to nominate either the Golar Spirit or the Golar Freeze to service the contract provided that the nominated FSRU satisfies certain technical specifications ahead of project start-up, which is expected in the fourth quarter of 2018.

Due to the vessel staying in service for up to 15 years without drydock and will, therefore, undergo drydocking as well as some minor modifications prior to service commencement, the Partnership said in a statement.

The capital element of the charter rate will vary according to demand for regasification throughput but includes a cap and a floor and so is expected to generate annual operating income before depreciation and amortization of between approximately $18 and $22 million.

The charter includes an option after 3 years for the charterer to terminate the contract and seek an alternative regasification solution, but only in the event that certain throughput targets have not been met.

Additionally, Golar Partners will have a matching right to provide such alternative solution. The charter also includes a 5-year extension option.