Golar LNG has signed a $684mn deal with the Keppel Shipyard in Singapore to convert a Moss type lng carrier, the Gandria, into a GoFLNG (SEN, 32/8) facility.

The company said the decision to go ahead with the third conversion project was taken following a thorough review of the growing portfolio of business development opportunities for GoFLNG.

‘This has shown potential demand from several possible customers for delivery of floating liquefaction facilities as early as 2018,’ the company said.

The Gandria conversion will now be dedicated to Ophir Energy’s Fortuna (32/ 8) flng project in Equatorial Guinea, which requires delivery of GoFLNG facilities in 2019.

In parallel with this decision to commit Gandria to the Ophir project, Keppel and Black & Veatch will now update their feed study, accommodating the deepwater operation in Equatorial Guinea on the basis of the Gandria.

The move means the converted Gimi could cover the potential emerging demand for a 2018 GoFLNG project.

Meanwhile, Golar LNG has secured financing for its first GoFLNG project from CSSC (Hong Kong) Shipping.

The funding will be provided for a conversion financing and sale and leaseback transaction for the GoFLNG Hilli (32/8).

The financing structure will fund up to 80% of the project cost and will be split into two phases. The first phase enables Golar to drawdown up to $700mn from the facility to fund the ongoing conversion cost, once Golar has spent $400mn of the estimated $1.2bn conversion cost and the tolling contract with Perenco and SNH have been ratified by the Cameroon government, expected during Q3 2015.

The company has spent approximately $385mn against the conversion project to date and expects that the equity threshold required to trigger the financing arrangement will be reached shortly.

Offshore