Stolt-Nielsen Limited, Golar LNG Ltd and Höegh LNG Holdings Ltd Announce Joint $182 Million Investment in Avenir LNG Ltd
October 01 2018 - 9:00AM
Hamilton, Bermuda, 01 October 2018
- Golar LNG Limited ("Golar LNG" or "Golar") announced today an
investment of USD 24.75 million in Avenir LNG Ltd. The investment
is part of a combined commitment of up to USD 182 million from
Stolt-Nielsen Ltd. ("Stolt-Nielsen"), Höegh LNG Holdings Ltd.
("Höegh LNG") and Golar for the pursuit of opportunities in
small-scale LNG, including the delivery of LNG to areas of stranded
demand, the development of LNG bunkering services and supply to the
transportation sector.
Avenir LNG intends to utilize the
best-in-class capabilities of its anchor investors to build a
global presence as the leading provider of small-scale LNG, and it
will be among the first movers in this market with a fleet of
small-scale LNG carriers and terminals. The market for small-scale
LNG is rapidly expanding, with great potential to be realized in
the off-grid power, transportation and bunkering markets because of
high-margin oil-to-gas switching, policy changes and environmental
benefits of consuming LNG relative to alternative fossil fuels. The
forthcoming IMO 2020 regulations are one of many driving factors
for increased small-scale LNG consumption, and Avenir LNG plans to
introduce safe and efficient ship-to-ship bunkering services at key
strategic ports to meet and develop demand for LNG as a marine
fuel.
Avenir LNG was originally formed
by Stolt-Nielsen in 2017 to provide LNG to markets lacking access
to LNG pipelines. Stolt-Nielsen will consolidate all its LNG
activities into Avenir, including four small-scale LNG carriers
currently under construction at Keppel Singmarine in Nantong,
China, and an LNG terminal and distribution facility under
development in the Italian port of Oristano, Sardinia. Avenir LNG
plans to source and ship LNG to the terminal using small LNG
carriers, and distribute the LNG in trucks and through
regasification into the local gas grid.
Golar LNG and Höegh LNG will each
hold an initial share of 25% of Avenir LNG, while Stolt-Nielsen
will remain the largest shareholder with ownership of 50%.
Subsequent to the initial capital raise, Avenir LNG contemplates a
public listing on the Oslo Over-The-Counter market during 2018.
Commenting on the transaction,
Iain Ross, Chief Executive Officer of Golar LNG, said, "Small scale
LNG transportation and distribution represents an exciting new
market with significant growth prospects. Avenir is the
right vehicle for this market entry and its formation builds on the
teaming agreement signed with Stolt-Nielsen in June 2015. The
addition of Höegh LNG will allow Avenir to create a business with
the experience and scale to tackle all aspects of small scale
LNG."
FORWARD LOOKING
STATEMENTS
This press release contains
certain forward-looking statements concerning future events and
Golar's operations, performance and financial condition.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate or imply future
results, performance or achievements, and may contain the words
"believe", "anticipate", "expect", "estimate", "project", "will
be", "will continue", "will likely result", "plan", "intend" or
words or phrases of similar meanings. These statements involve
known and unknown risks and are based upon a number of assumptions
and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond Golar's
control. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Important
factors that could cause actual results to differ materially
include, but are not limited to, those factors listed from time to
time in the reports and other documents Golar files with the United
States Securities and Exchange Commission.
New factors emerge from time to
time, and it is not possible for Golar to predict all of these
factors. Further, Golar cannot assess the impact of each such
factor on its business or the extent to which any factor, or
combination of factors, may cause actual results to be materially
different from those contained in any forward-looking statement.
Golar does not intend to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any
change in Golar's expectations with respect thereto or any change
in events, conditions or circumstances on which any such statement
is based.
Hamilton, Bermuda
October 1, 2018
Enquiries:
Golar Management Limited: + 44 207 063 7900
Graham Robjohns
Stuart Buchanan
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Golar LNG via Globenewswire
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