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June 24, 2008
Kawasaki Kisen Kaisha, Ltd.

"K" Line to become Strategic Investor in FLEX LNG

Kawasaki Kisen Kaisha, Ltd. ("K" Line) is pleased to announce that the company will become a strategic investor in FLEX LNG Ltd. (FLEX LNG), having agreed to take a 15% stake in FLEX LNG through participation in the private placement of ordinary shares announced by FLEX yesterday.

As part of the strategic investment the two companies have entered into a Memorandum of Understanding (MOU) following the election of "K" Line as a preferred partner to provide LNG and offshore related transportation services. Furthermore it is the intention of the parties to utilize "K" Line's extensive relations in the Asia-Pacific region to jointly market and promote FLEX LNG's LNG Producers targeting LNG suppliers and off-takers..

This whole progress affords "K" Line an opportunity to expand its business upstream, taking advantage of the expertise and know-how accumulated through 25 years of safety in LNG tanker operations. The combination of floating LNG production, its existing LNG transportation, off-shore support vessel business and the global CNG project development that "K" Line is promoting together with EnerSea Transport LLC allows "K" Line to provide a full spectrum of gas monetization solutions.

FLEX LNG was incorporated in 2006 with the objective of commercializing the world's first floating liquefaction unit (LNG Producer) and has signed four ship building contracts with Samsung Heavy Industries for LNG Producer hulls utilizing the SPB LNG containment system. This provides the LNG industry with a unique possibility of accessing currently uncommitted gas reserves for LNG production from 2011 onwards. By using the proven nitrogen expander liquefaction cycle, the most robust and flexible liquefaction technology in use in the LNG industry, the LNG Producer is to source gas from numerous potential offshore locations worldwide where natural gas today is either left stranded or is being flared.

In June this year, FLEX LNG signed Heads of Agreement (HoA) among Mitsubishi Corporation and Peak Petroleum Industries Nigeria Ltd. for the development of OML122 field in Nigeria. Furthermore, FLEX LNG executed HoA with Rift Oil to develop the field in Papua New Guinea more recently.

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