Golar LNG Limited Enters Joint Venture Agreement and Negotiates E+P+C Contract for Livorno LNG Import Terminal Project in Italy

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Researched by Industrial Info Resources (Sugar Land, Texas). Golar LNG Limited (NYSE:GLNG ) (London, England), a subsidiary of Golar Offshore Toscana Limited, signed a share purchase agreement with OLT Energy Toscana SpA in November 2006 for the acquisition of 20% of shares in OLT Offshore LNG Toscana SpA (OLT-O). The purpose of the joint venture company OLT-O is the construction of the Livorno offshore LNG import and regasification terminal, which will be located approximately 20 kilometers off the coast of Livorno, Italy. The new LNG terminal, which has been granted a government decree approving the project, will have a regulated LNG regasification capacity of 3.75 billion cubic meters per year. This comes to approximately 132.42 billion cubic feet per year, or 362.82 million cubic feet per day.

The Livorno project will take the form of a floating storage and regasification unit (FSRU), which entails the conversion of one of Golar’s existing LNG Carriers into an FSRU. The new $660 million FSRU will be connected to the mainland natural gas pipeline grid by a new 25 kilometer pipeline.

Presently Golar LNG is negotiating with Saipem SpA (Milan, Italy) for the engineering, planning and construction (E+P+C) contract for the Livorno LNG project and expects to award the contract by June 2007. Once the contract is awarded, it should take approximately 12 months to order the long lead items such as LNG pumps and vaporizers and complete the conversion of the LNG Carrier into a FSRU. All things considered, the Livorno LNG import and regasification project should be on-station and operational by the third quarter of 2008.

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