Golar LNG Limited further new building LNG carriers

Golar LNG Limited ("Golar" or the "Company") recently announced that it has acquired further firm contracts to build two additional 160,000 m3 LNG carriers with the Korean shipbuilder Samsung Heavy Industries Co., Ltd ("Samsung").

The newbuilding contracts were originally entered into by companies affiliated with Golar's largest shareholder, World Shipholding. Golar has acquired the newbuilding contracts from the affiliated party based on the original contract.

The two latest vessels are for delivery in 2013 and 2014 at a total cost of approximately $400 million. In addition to the now 6 confirmed vessels, Golar has fixed priced options to add further capacity.

As previously reported, Golar has the possibility to include ice strengthening / winterization of the ships as well as regasification equipment.

The Golar Board considers the competitive price and payment terms, the early delivery positions and the flexibility with respect to design to create a significant commercial advantage over other operators who will enter the newbuilding market at a later stage.

In addition to the announced new building program, Golar is in final discussions regarding firm commitments for construction of multiple FSRU carriers.

The Golar Board said it was pleased by the actions taken by its management in order to secure the most attractive yard slots from the most experienced yard.

The Golar Board anticipates that total financing for the existing new building commitments can be arranged through existing cash, working capital and additional bank financing.

The Golar Board said it does not see a need to raise additional equity to finance the existing new building program. <Korea Shipping Gazette>