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Golar LNG Energy Limited - New Venture
The transaction confirms the Board's commitment to develop Golar with three distinct business areas, (i) traditional LNG shipping, (ii) LNG infrastructure projects which will include floating liquefaction and re-gasification terminals, and (iii) management services to third parties combined with proprietary trading of LNG. The new venture allows the Company to develop itself into an integrated provider of LNG and related services to its customers combining LNG cargoes, LNG shipping services and floating re-gasification terminals. Blake Herndon says in a comment; "We are extremely pleased to have made a deal with Golar. Golar's strong foothold and long history in the LNG shipping market combined with the Company's creative mindset in developing new technology will, together with the experience and relationships we bring, create a very strong franchise. The rapid developments in the trading pattern for LNG provides an interesting opportunity for the new venture. The ongoing separation of oil and gas prices further enhances this as it provides the opportunity to reduce the feed cost of our customers by substituting oil products with flexible delivery of LNG". Golar will make a significant equity investment in its new subsidiary, which will be drawn from the Company's cash reserves. The subsidiary will be further supported by credit lines from commercial banks. It is expected that the business area will be fully operational from September and the Board expects the business to be profitable from the first full year of operation. Golar LNG Energy Limited |