Flex LNG, partners to develop LNG project off Nigeria

Flex LNG has signed a heads of agreement with Mitsubishi and Peak Petroleum Industries Nigeria to jointly develop and market the world's first floating liquefaction project off Nigeria.

Eric Watkins
Senior Correspondent

LOS ANGELES, June 17 -- Flex LNG Ltd. has signed a heads of agreement with Mitsubishi Corp. and Peak Petroleum Industries Nigeria Ltd. to jointly develop and market the world's first floating liquefaction project off Nigeria.

The partners will exploit natural gas reserves at Peak's offshore OML 122, and they expect the project to produce 1.5 million tonnes/year of LNG for 15 years. The first commercial LNG cargo is planned for second-half 2011.

Flex Chief Executive Philip Fjeld said Mitsubishi intends to become an equity participant in the LNG Producer concept and will also play a key role in the project's upstream aspects.

In April Flex signed a contract for a fourth 170,000 cu m SPB LNG Producer Hull from Samsung Heavy Industries (SHI) in South Korea under similar terms and conditions as three other units already on order.

Delivery date for the newest LNGP Hull is March 2012, while Flex's first LNGP vessel from SHI is due in December 2010 at a cost of $460 million.

Contact Eric Watkins at hippalus@yahoo.com.

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