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Norway's FLEX LNG Takes Alternative Plan To Construct LNG Carrier
=Started a discussion with Samsung
Norway's FLEX LNG Limited, which aims to participate in LNG project with a floating LNG production vessel "LNG Producer", began to consider possibility of converting LNG Producer contracts into contracts for the construction of LNG carrier and/or regasification vessel.

The company has promoted LNG production project in Papua New Guinea "Gulf LNG Project" jointly in collaboration with the United States Inter Oil Corporation, etc. However, since it has become unclear when the final investment decision (FID) can be made, it started discussion with Samsung Heavy Industries to include negotiations for the alternative deployment of the capital invested by FLEX LNG.

In the construction of "LNG Producer", FLEX LNG has cooperated with Samsung to tackle the development. In an effort to give support to the realization of Gulf LNG Project, both companies completed front-end engineering design (FEED) of LNG Producer and have already invested a large sum of money in the project.

In preparation for the project remaining static as it is, FLEX LNG began to explore possibility of alternative plan. In an attempt to prevent the previous investment from being wasted for nothing, FLEX LNG plans to change the agreements reached with Samsung into contracts for the construction of LNG carrier and/or regasification vessel and get the timing right to construct a vessel for Gulf LNG Project "LNG Producer" after carefully watching actions taken by Inter Oil and others. The Papua New Guinea Government intends to back up the project which is expected to contribute to the economic development and is requesting the companies, that are developing the project, to attract vastly-experienced operators for the purpose of increasing the feasibility. Meanwhile, the government itself is facing various problems including the confrontation between the incumbent president and the interim administration,. Under the circumstances, the flow of the project in the future might drastically alter depending on the moves by the operators of the project and the government.

In the wake of a variety of changes in the situation, the final investment decision (FID) on Gulf LNG Project, which was originally slated for the end of 2011, has been delayed, Accordingly, the schedule is still up in the air at the moment. On the other hand, several companies have already submitted bids for an operator of the project. It is anticipated that if everything goes smoothly, one of them will be selected as the operator around April.
last modified : Thu 08 Mar, 2012 [10:11]
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