Stolt-Nielsen Limited, Golar LNG Ltd and Höegh LNG Holdings Ltd Announce Joint $182 Million Investment in Avenir LNG Ltd
October 01 2018 - 9:01AM
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
Golar LNG (NASDAQ:GLNG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Golar LNG (NASDAQ:GLNG)
Historical Stock Chart
From Sep 2023 to Sep 2024