EXMAR to Deliver Canadian Floating Gas Liquefaction and Storage Unit

EXMAR announced today the signing of a Letter of Intent (LOI) to provide a Floating Liquefaction & Storage Unit (FLSU) to serve the BC LNG Project in British Columbia, Canada. The LOI includes a 20-year charter to BC LNG plus options for 2 additional 5-year periods.

According to a statement on the BC LNG website, this barge-based liquefaction plant will be installed at a permanent location in Douglas Channel “where it will be grounded on a prepared foundation and interconnected to support systems and the berth. A small LNG buffer tank, electrical substation, and other support facilities will be located on land adjacent to the liquefaction plant.”

Exmar notes FLSU will be designed to convert up to 125 MMSCFD (million standard cubic feet per day) of natural gas into approximately 900,000 tonnes per annum of LNG. Initial LNG production will be approximately 700,000 tonnes per annum; this is based on the current transportation agreement and estimates of available pipeline capacity from the Pacific Nothern Gas.

Delivery of the vessel is planned for Q1 2016.

Exmar adds the export permit has been received and the project is on schedule to obtain all required approvals and permits by the end of 2013.

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This will be the world’s second Floating LNG Production Unit, after the EXMAR and Pacific Rubiales Energy (PRE) first unit offshore Colombia which will be operational in the first quarter of 2015.

Terms

Under the terms of the LOI with LNG Partners, the operation and maintenance of the FLSU, all services associated with the receipt of gas and delivery of the LNG at the Loading Port shall be performed by Exmar Shipmanagement NV, a wholly owned subsidiary of the EXMAR Group.

The agreement with LNG Partners also provides a process whereby EXMAR will have the option to participate with LNG Partners collectively in a minimum of 50% of the project investment.

Nicolas Saverys, CEO of Exmar said, “BC LNG will be the first operational LNG export terminal in Canada and has an excellent location to serve the growing Asian markets. In cooperation with our partners on the PRE project, we are proud to provide a proven, cost efficient and fast track barge solution to the project.”

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