Gimi MS will develop, construct and operate an FLNG facility on the Mauritania and Senegal maritime border.
Keppel Corporation has entered, through its subsidiary First FLNG Holdings (FFH), into a conditional share subscription agreement with liquefied natural gas shipping firm Golar LNG (Golar) and Gimi MS Corporation (Gimi MS) to subscribe for 30% of the total issued ordinary share capital of Gimi MS, an announcement revealed.
Under the agreement, Gimi MS will undertake the development, construction and operation of a floating liquefied natural gas (FLNG) facility to be located on the Mauritania and Senegal maritime border. Concurrent to the share subscription agreement, Gimi MS has also executed a 20-year FLNG lease and operate agreement with BP, Keppel added.
With the funds from the subscription of shares by its shareholders, Gimi MS will also acquire and own the Moss LNG carrier Gimi which will be converted into an FLNG vessel by Keppel Shipyard. In December 2018, Keppel Shipyard received the limited notice to proceed from Golar to commence early conversion works, the firm revealed. The carrier has been relocated from layup to Keppel Shipyard in Singapore where conversion works will take place.
“On completion of the subscription, FFH will enter into a shareholders' deed with Golar and Gimi MS,” Keppel said in a statement. “Under the terms of the shareholders' deed, Gimi MS may issue cash calls on a pro rata basis to the shareholders, namely FFH and Golar, for future funding requirements for the construction, deployment and commissioning of Gimi based on an anticipated project budget limit of approximately $1.75b (US$1.3b) exclusive of financing costs.”
FFH is committed to invest up to an estimated maximum total of $337.06m (US$250m) in connection with the project inclusive of the subscription price.
Keppel and Golar previously partnered on the FLNG Hilli Episeyo, which is said to be the world's first FLNG conversion project, that served as a quick and cost-efficient solution for monetising stranded gas reserves.
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