Bermuda firm and Chinese players sign on dotted line for FLNG’s $1.2 billion debt refinancing

Bermuda-headquartered owner and operator of liquefied natural gas (LNG) midstream infrastructure Golar LNG has inked finance lease agreements with a consortium of Chinese leasing companies for the refinancing of the existing debt facility for a floating LNG (FLNG) unit, which is working in African waters for the UK-headquartered BP.

The sale leaseback facility, which Golar LNG’s finance lease agreements with a consortium of Chinese leasing companies have put in place for the refinancing of the existing FLNG Gimi debt facility, will be approximately $1.2 billion.

According to the company, the transaction, which is subject to closing conditions, including documentation and third-party approvals, is expected to close within Q2 2025. The contemplated sale and leaseback facility will have a tenor of 12 years and a 17-year amortization profile, with quarterly repayment installments throughout the lease period.

“Upon closing and repayment of the existing debt facility, Gimi MS Corporation is expected to generate net proceeds of approximately USD 530 million. This amount includes the release of existing interest rate swaps. Golar will benefit from 70% of these proceeds, equivalent to approximately USD 371 million,” underlined the firm.

Golar LNG’s FLNG unit is working on BP’s Greater Tortue Ahmeyim (GTA) Phase 1 LNG project, which flowed the first gas from its subsea wells to the floating production storage and offloading (FPSO) GTA earlier this year. The FLNG Gimi received feed gas from the FPSO on January 18, 2025.

The GTA Phase 1 development, perceived to have the deepest subsea infrastructure in Africa with wells in water depths of up to 2,850 meters, will produce around 2.3 million tons of LNG annually for over 20 years. BP is the operator of the project with a 56% working interest, alongside Kosmos Energy (27%), Petrosen (10%), and SMH (7%). 

Gas flows to the FPSO GTA approximately 40 kilometers offshore, where water, condensate, and impurities get removed, enabling gas to be transferred via pipeline to the FLNG Gimi. Following a gas leak at the GTA development, which is said to be the biggest project in BP’s portfolio, the oil major has continued with gas production as usual.