Golar LNG Limited sells Golar Viking to Equinox

Golar LNG Ltd. has announced the completion of the sale and delivery of the 2005 built LNGC Golar Viking to PT Perusahaan Pelayaran Equinox.

The transaction has been concluded at a sale price of $135 million. The vessel has been re-named Salju under Indonesian flag and Registry. 

Under Indonesian Cabotage regulations, LNG cargoes produced and sold within Indonesia must be transported on an Indonesian flagged vessel. 

With an anticipated increase in domestic allocation for Indonesian produced LNG cargoes in 2015, Equinox believe the timing is right to acquire the Golar Viking and transfer the vessel to the Indonesian flag.

The growth in the Indonesian domestic trade of LNG is the direct result of the recent introduction of 3 new LNG Terminals, which are supplied from LNG production facilities at Bontang and Tangguh.

The receiving Terminals are the FSRU Nusantara Regas Satu (commenced operations in second-quarter 2012) in West Java, the PGN FSRU (third-quarter 2014) in Lampung and the Arun Receiving Terminal in Aceh Province, scheduled to commence operations in the first quarter of 2015.

FSRU Nusantara Regas Satu is owned and operated by PT Golar Indonesia, a joint venture company between Golar and Equinox's parent company.

The technical specification of the Golar Viking, now renamed Salju, is well suited for the short haul nature of the domestic Indonesian trade.

The transfer of ownership and the anticipated future employment of the vessel recognizes that long haul sea borne trade will increasingly become dominated by modern, larger and more efficient vessels providing greater economies of scale.

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