Perenco will increase LNG exports from Cameroon in 2022, following the drilling of two or three wells this year.
Golar LNG reported an agreement with Perenco and Cameroon’s state-owned Société Nationale des Hydrocarbures (SNH) to increase throughput at the FLNG Hilli Episeyo.
In 2022, the Hilli will increase to 1.4 million tonnes per year, up by 200,000 tonnes. Furthermore, the upstream companies have linked the tolling fee to the Netherlands’ TTF price. On Trains 1 and 2, Golar has a tolling fee linked to Brent crude.
Current 2022 prices average $8.7 per mmBtu on TTF, which would provide another $26.1mn in adjusted EBITDA to Golar, it said.
Perenco and SNH plan to drill and appraise two or three gas wells in 2021, Golar continued. They will upgrade upstream facilities in 2022, which will support more production from 2023 onwards.
Earlier this year, Golar had expressed the hope that Perenco would begin drilling in March or April.
Golar has also agreed to provide an option to Perenco and SNH for more capacity at the Hilli vessel. The companies can add another 400,000 tpy of LNG from January 2023, until the end of the contract term, in 2026. This could take production to 1.6mn tpy.
The companies must opt to exercise the option in the third quarter of 2022.
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