Floating liquefied natural gas production unit operator Flex LNG has signed a letter of intent with an undisclosed firm to lease out one of its LNG producer units on order at Samsung Heavy Industries of South Korea. The agreement also includes an option for an additional unit to be delivered by Flex.

The vessel is expected to have an annual production capacity of a minimum of one million tonnes and will be employed under a 20-year contract.

According to Flex, the specific geographical location has not yet been defined, and it is likely that the vessels could be utilized on several fields during the contract life time. Final investment decision is expected in 2008.

Philip Fjeld, CEO of Flex LNG, said: We are very pleased with expanding our client portfolio by signing another preliminary agreement for the potential use of our LNG producer units. This demonstrates the attractiveness of the Flex LNG value proposition and we feel honored to be part of the ongoing liquefaction revolution.