Golar LNG wins FSRU contract for Chile’s Mejiliones Seaport project

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mejillones seaportJULY 6, 2012 — Chilean energy company Gas Atacama has awarded John Fredriksen controlled Golar LNG Limited the Mejillones Seaport FSRU Project. The initial term of the contract, in Gas Atacama’s option, is for 15 or 20 years and is expected to generate an average annual EBITDA for Golar of approximately $48 million for the 15 year charter or $47 million for the 20 year charter. Gas Atacama has three, five-year contract extension options, a potential 15 additional years of commitments.

The FSRU will be moored approximately 1.6 km offshore and in approximately 50 m water depth in the Bay of Mejillones.

The newbuild FSRU will be capable of storing 170,000 cu.m of LNG and delivering approximately 180 MMcfd per day of regasified LNG and will be delivered to the project in the fourth quarter of
2015. The regasified LNG will be delivered via Gas Atacama’s subsea pipeline and is intended primarily to supply the on-shore 780 MW Central Térmica Atacama thermal power plant. Regasified LNG could additionally be used to the meet the demands of some of GasAtacama’s mining customers, as well as other power generators. Parties have agreed to the possibility for further expansion of the FSRU regasification capacity of up 360 MMcfd per day.

Final detailed contracts were executed in a signing ceremony by Gas Atacama’s CEO and Golar’s CEO on July 5, 2012 in Santiago, Chile, however full commitment by the parties to the transaction is subject to certain contractual conditions related to Gas Atacama achieving a threshold of new power sales agreements prior to 31 December 2012. In line with its agreements with Golar LNG Partners L.P., Golar is obliged to offer all vessels contracted for more than 5 years for sale to the Partnership.

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