UPDATE 1-Start of Golar's floating LNG in Cameroon may draw more Africa clients

* First LNG in Cameroon helps prove Golar's FLNG concept

* Expected to positively impact Fortuna FLNG, order book

* First LNG export from Cameroon expected in April

* Gazprom's trading arm seen seeking more tankers(Recasts with first LNG export target from Cameroon, Gazpromchartering plan)

By Oleg Vukmanovic

LONDON, March 12 (Reuters) - Golar LNG said onMonday it had started production at its floating LNG (FLNG)platform in Cameroon, the world's second working example of thenascent technology and a milestone likely to boost its Fortunaproject in Equatorial Guinea.

As the cost of land-based LNG plants more than tripled inthe decade to 2013, Golar pioneered the conversion of ageing LNGtankers into giant refrigerators capable of chilling gas intoits liquid form at minus 162 Celsius.

Natural gas when liquefied can be shipped and sold aroundthe world on tankers, like oil.

By starting up the pilot floating plant in Cameroon, Golaris removing uncertainty about the risks associated withsqueezing equipment into a fraction of the space occupied by anLNG plant on land, shipping analysts and industry sources say.

Success in Cameroon could speed up Golar's progress inEquatorial Guinea, where a final investment decision on FortunaFLNG was delayed after three Chinese banks pulled out last year.

Other projects in Africa could also adopt the technology,such as BP's plans in Senegal and Mauritania, analysts say.

All of the 1.2 million tonne annual output from the Cameroonproject, the Hilli Episeyo, has been sold to Gazprom'strading arm for eight years.

The first cargo would be exported in early April using theGalicia Spirit LNG tanker, which Gazprom Marketing & Tradinghas moored off Cameroon, several shipping sources said.

The trader was chartering a second vessel, the sources said.

Golar LNG gave no indication of when the Hilli would beginexports. It faces a penalty fee for every day delayed beyondlate April. One analyst said the deadline was April 24.

Golar could not immediately be reached for comment.

First LNG deliveries were initially targeted for the secondhalf of 2017.

Golar's project in Equatorial Guinea, involving oil servicesfirm Schlumberger and Ophir Energy, was dealt a blowlast year when Chinese banks offering $1.2 billion pulled out,delaying the decision to proceed.

Chinese banks' appetite for financing floating LNG importterminal and FLNG investments has waned in response to recentpoor returns and delays, according to one market source.

Ophir aims to take its financial investment decision onFortuna FLNG in the first half of this year, with the help offinancing from a new Asian bank.

The sources said the success of the Cameroon project was oneof several factors that would determine whether the Asian banksupported the Equatorial Guinea project.

(Reporting by Oleg VukmanovicEditing by Jason Neely and Edmund Blair)