Tue | Jan 15, 2019

New Fortress completes offshore LNG terminal - Golar expects to generate US$22m from Jamaica project

Published:Friday | December 21, 2018 | 12:00 AM
This photo supplied by New Fortress Energy shows the Golar Freeze, which has arrived in Jamaica at the newly-completed LNG terminal in Old Harbour Bay.

Natural gas supplier New Fortress Energy has erected its new floating regasification vessel called the Golar Freeze offshore Old Harbour, under a long-term deal expected to generate US$22 million in revenues annually for vessel owner Golar LNG Partners, according to market filings overseas.

New Fortress has supplied a photo of the vessel and platform but did not consent to an interview, saying its official unveiling will be done early in the new year.

The Golar Freeze will service the terminal which will become the energy company's regasification hub in the region. The ship charter will last at least 15 years.

"Golar Freeze is expected to add a further US$380 million of effective revenue backlog and generate between US$18 and US$22 million of annual contracted revenues less operating expenses," stated Golar which did not name New Fortress as the client in its filings.

Golar operates a series of gas vessels globally from bases in Norway and the United Kingdom, for which it enters into long-term transport contracts. The ship operator said that Golar Freeze was "nominated" in July to service the "15-year time charter with an energy and logistics company in offshore Jamaica".

"Subsequently, the Golar Freeze underwent dry-docking to satisfy certain technical specifications of the new charter," the company said. The modifications were done at a dry dock in Dubai.

New Fortress currently holds contracts for five terminals. In Jamaica, the American company operates one completed gas terminal in Montego Bay, which is operating at 36 per cent of its capacity. The offshore terminal at Old Harbour - which will feed supplies to Jamaica Public Service Company's LNG-fired power plant also under development in Old Harbour - is officially set for completion in early 2019, but is described as operational by New Fortress in a prospectus to US investors.

New Fortress aims to raise US$100 million in an initial public offering but the precise time for listing and pricing of the IPO are still to be disclosed.

The energy company also has three other terminals in development - in Puerto Rico, Mexico and Ireland- and operates a liquefaction manufacturing facility in Miami that feeds the terminals in Jamaica.

New Fortress also outlined plans to develop five to 10 other liquefaction facilities by 2023, led by a plant in Pennsylvania that is to be commissioned in 2019.

steven.jackson@gleanerjm.com