Liquefied natural gas (LNG) shipper Golar announced that it has decided to proceed with a spin-off of its Tri-Fuel Diesel Electric (TFDE) LNG carrier business as well as to focus its activities primarily on floating liquefied natural gas (FLNG) and downstream assets.
According to a stock exchange announcement, this will allow LNG shipping investors more direct exposure to the LNG shipping market and reposition Golar's core business toward LNG infrastructure on long-term contracts.
Golar are in talks with other owners of similar tonnage to join the new shipping company and have discussed with Golar Power exchanging one of their LNG carriers for the FSRU Golar Tundra.
Management of Golar's vessels will remain with Golar Management Norway AS, it said.
Assuming the joint structure proceeds as planned, Golar's direct exposure to the carrier market will then be limited to one modern steam turbine vessel, Golar Arctic, with Golar Viking contracted to be sold in 2020 post FSRU conversion.