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Tuesday, August 22, 2017
Equatorial Guinea’s Ministry of Mines and Hydrocarbons, Ophir Equatorial Guinea (Block R) Ltd, One LNG SA and GEPetrol, nominated Gunvor Group Ltd as its preferred LNG buyer for the offtake from the Fortuna FLNG project. All parties have agreed the principal commercial terms subject to finalizing a Sale and Purchase Agreement (SPA) for the offtake ahead of the FID on the Fortuna FLNG project.
Gunvor is committed to take the full contract capacity of the Gandria FLNG vessel of 2.2 mmt pawhich will be purchased on a Brent-linked, Free on Board (FOB) basis for a 10-year term. The contract structure allows flexibility for up to 1.1mmtpa of the Fortuna capacity to be marketed on an alternate basis. Consequently, the agreement gives the Fortuna partners alongside the Equatorial Guinean government, the potential to sell volumes to higher priced gas markets in Africa and beyond, while retaining a share in the profits of such onward marketing.
With the identification of a preferred buyer now achieved, the last significant milestone prior to the FID of the Fortuna FLNG project is the completion of the project funding, with FID remaining on track for 2017
Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons for the Republic of Equatorial Guinea, commented: “The selection of Gunvor sets a landmark moment in the development of the Fortuna Project. The partnership with Gunvor also paves the way for the government’s objective to deliver important projects that monetize our gas, promotes local content and brings world-class petroleum technology to Equatorial Guinea. The Fortuna Project will target becoming the first choice supplier of LNG for the LNG to Africa initiative, furthering Equatorial Guinea’s leadership position in Africa as an LNG exporter.”
Nick Cooper, CEO of Ophir, commented: “We thank those parties that participated in the competitive tender process for the offtake and welcome Gunvor to the Fortuna FLNG Project. Gunvor’s involvement is a further addition to a strong partnerships along the Fortuna value chain. Our focus is now on completing the financing package and debt facility”. With Golar’s sister vessel, the Hilli, nearing completion and with Petronas FLNG having recently delivered commercial cargoes, FLNG is now entering the mainstream.”
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