Golar LNG partners with Perenco Cameroon and SNH

Commencing 2022 the capacity utilisation of Hilli will increase by 200,000 tons of LNG, bringing total utilisation in 2022 to 1.4 million tons. The tolling fee for the 2022 incremental capacity is linked to European gas prices at the Dutch Title Transfer Facility (TTF). At current average 2022 TTF gas prices the increased capacity utilisation represents an expected US$26.1m in incremental Adjusted EBITDA.

In addition to the 2022 capacity increase, Perenco and SNH intend to drill and appraise two to three incremental natural gas wells during 2021, and subsequently upgrade upstream facilities in 2022 to support further sustained increases in production from 2023 onward.

Under the Agreement, Perenco and SNH are granted an option to increase capacity utilisation of Hilli by up to 400,000 tons of LNG per year from January 2023 through to the end of the current contract term in 2026.  This has the potential to increase total annual LNG production from Hilli to 1.6 million tons from January 2023 onwards. 

At current TTF future prices, and assuming the Option is exercised, the incremental adjusted EBITDA backlog of the potential increase in capacity utilisation for Hilli from 2022 until July 2026 is expected to be around US$113mn.

Golar has an 86.9% economic interest in the incremental adjusted EBITDA generated as a result of the Agreement. The agreement will not change any existing terms, conditions, tolling fees or the Brent Oil link associated with trains 1 and 2.

Golar CEO Karl Fredrik Staubo commented, “The innovative tolling fee arrangement delivers on our announced strategy to increase our upstream LNG and gas exposure. Today’s announcement is a further testimony to Hilli’s strong track record of 100% commercial uptime since delivery in 2018 and will benefit all stakeholders involved in the project, as well as bringing us closer to our target to reach full capacity utilisation of Hilli.”