Golar Power reaches Financial Closing on 1.5GW Sergipe Power Project

April 19, 2018 - Golar LNG Limited ("Golar") announces today that Golar Power Limited ("Golar Power"), a joint venture with Stonepeak Infrastructure Partners, has reached financial closing on the 1.5GW Porto de Sergipe I Power Project (the "Project" or "Sergipe TPP"). Located in Sergipe, NNE of Brazil, the Project will be the largest and most efficient thermoelectric power plant in Latin America and the Caribbean upon its completion.

CELSE (Centrais Elétricas de Sergipe S.A.), the Project company 50% controlled by Golar Power, will receive US$1.340 billion under a non-recourse project financing structure. Total proceeds from the financing will be used to fund remaining capital expenditures of the Project, including: the 1.5GW Power Plant, a dedicated 34km 500KV high-voltage transmission line, and associated gas pipeline and mooring infrastructure required for the integrated LNG import terminal facility.

Total Project capex including taxes and financing costs is estimated at US$1.740 billion. The total equity contribution of approximately US$400 million has been fully paid-in and includes US$123 million in cash reserve accounts that were pre-funded by the project sponsors. The power project will generate a forecasted annual EBITDA of US$323 million at current exchange rates, prior to any dispatch. Commencement of power station commercial operations is scheduled for January 1^st, 2020. Payments under the executed PPA are inflation indexed and provide for pass-through of fuel costs to the PPA counterparties.

Golar Power CEO Eduardo Antonello commented: "This innovative financing represents a key milestone in the development of Golar Power infrastructure projects globally, establishing a precedent for financing in local currency in support of projects receiving revenues in local currency which are adjusted based on inflation. The Project bond issuance has attracted the interest of multiple international investors and opens a new horizon of opportunities for infrastructure development. With this experience, we believe Golar Power is uniquely positioned to help deliver these opportunities globally to new and underserved customers and geographies.