LNG: Golar Places Orders for Ships

Stating that it “sees significant strength in the present development in the LNG shipping market,” Golar LNG is stepping up its investment in the sector with the announcing details of a fleet expansion.

The Company has entered into new building contracts valued at more than $400m for two vessels of 162,000 cubic metres each from Korea’s Hyundai Samho Heavy Industries, with options for another two.

Golar also said that it was, “in final discussions” about making more investments, both in LNG carrying ships and infrastructure-type LNG assets– likely to be either floating units for freezing gas for shipping, or for turning it back into gas on arrival.

In its statement, Golar said that it Global LNG trade is estimated to increase by in the region of 8%-10 % per year over the next few years with further upside if US LNG exports materialise.

Chairman John Fredriksen said: "We are excited to see the rapid developments in the LNG market. We clearly see LNG as one of the key parts in the future energy supply chain. The increased flexibility provided by floating production and regas solutions has transformed the LNG industry and made it significantly more competitive versus other energy types."

Last week, Golar principal Tor Olav Trøim said that LNG carrier investments were attractive because current charter rates paid off the whole cost of a new vessel within the first five years.

“You have a free vessel for the rest of the lifetime,” Trøim said.

Golar has a total of 13 modern LNG carriers including 2 FSRU's available for trading in the period 2012- 2014, in addition to the availability of has older vessels.