en.Wedoany.com Reported - On August 13, Golar LNG, a globally renowned operator of Floating Liquefied Natural Gas production storage and offloading units (FLNG), announced on its official website that the company has signed agreements with relevant shipyards for up to 3 FLNG conversion projects. These include an Engineering, Procurement, and Construction (EPC) agreement with Yantai CIMC Raffles Offshore Engineering Co., Ltd. for 1 FLNG conversion, which also includes an option for an additional FLNG conversion; simultaneously, Golar LNG formally signed a Letter of Intent with Singapore's Seatrium Group for 1 FLNG conversion project, reserving a shipyard slot for the formal signing of the project EPC agreement later this year.
According to the announcement, the FLNG to be converted by Golar LNG at CIMC Raffles will be its fourth FLNG, and also the second MK Ⅱ type FLNG conversion project undertaken by CIMC Raffles. This project is similar to the "Esperanza" FLNG currently being converted by CIMC Raffles, and the mother vessel for the conversion project has already been secured. It is understood that the "Esperanza" is approximately 390 meters in overall length and 70 meters in beam, and will be converted from a 148,500 cubic meter MOSS-type LNG carrier. It is expected to produce 3.5 million tons of LNG annually and is scheduled for delivery in 2027. Currently, this FLNG has completed over 15 million man-hours, with construction progress advancing as planned.
Golar LNG disclosed that Black & Veatch will provide its licensed PRICO® liquefaction technology for the conversion project, execute detailed engineering design and process design, procure topside module equipment, and provide commissioning support for the FLNG topside structure and liquefaction process systems. Golar LNG stated that adopting a unified design and constructing 2 FLNGs simultaneously at the same shipyard will facilitate significant synergies. The company's total budget for this FLNG conversion project is approximately $2.45 billion, with delivery expected before the end of 2029.
Golar LNG plans to seek long-term charter contracts for this FLNG, and related commercial negotiations are underway. Currently, the company owns 2 FLNGs, the "Hilli Episeyo" and the "Gimi". The former has completed an 8-year project operation in Cameroonian waters and is currently heading to Singapore for conversion, preparing for a new 20-year charter starting in 2027; the latter is operating in Mauritanian and Togolese waters, with current production 15% above contractual levels. Counting the "Esperanza" to be delivered and this newly added FLNG, Golar LNG's controllable LNG production capacity will increase by approximately 40% in the future, exceeding 12 million tons per year, making it the world's largest FLNG capacity owner.
It is worth noting that the "Hilli Episeyo" and "Gimi" were previously converted by companies under the Seatrium Group in 2017 and 2023, respectively. The Group has also secured gains this time, reserving a shipyard slot for Golar LNG for 1 MK Ⅱ or MK Ⅲ type FLNG conversion. The two parties plan to jointly advance FLNG conversion technology development and project activities, with the goal of finalizing the EPC agreement for the specific project in the second half of 2026. According to information disclosed by Seatrium, Golar LNG will pay a fee to support Seatrium's pre-project preparation work.
A relevant person in charge at Golar LNG stated that confirming the fourth FLNG conversion project and clarifying intentions for more potential projects will further expand the company's cooperation space in the FLNG field. The above projects all take into account current global FLNG demand and Golar LNG's operational strength, and can provide attractive LNG project solutions for customers in relevant potential regions. Golar LNG is confident that through deepened cooperation with various partners, it can successfully implement these projects and continuously create value for customers.
CIMC Raffles stated that the smooth progress of the first project has laid a solid foundation for further deepening cooperation between the two parties. Repeated construction of identical equipment and parallel construction at the same yard can fully reuse mature technical solutions, construction processes, and management systems, creating good project synergies. CIMC Raffles will continue to accumulate FLNG construction experience, further consolidate its capabilities in design and R&D, supply chain coordination, on-site construction, and full-process project management, strictly control project safety, quality, and milestone progress, steadily and efficiently advance project execution, and continuously consolidate its core competitiveness in high-end offshore engineering equipment.
A relevant person in charge at Seatrium stated that cooperating with Golar LNG again on FLNG conversion projects is a rare opportunity. The company will leverage the experience from the "Hilli Episeyo" and "Gimi" projects, adopt serialized construction methods, strengthen standardized construction, improve market response speed and project execution capability, and achieve comprehensive cost efficiency.
Golar LNG has an 80-year history, is headquartered in Bermuda, and is listed on NASDAQ. It focuses on FLNG design, conversion, and operation businesses, and led the implementation of the world's first LNG carrier-to-FLNG conversion project. According to its financial report released on August 13, in the second quarter of this year, Golar LNG generated revenue of $130.5 million, adjusted EBITDA of $127 million, and net profit attributable to shareholders of $38 million. As of the end of the quarter, total cash reserves were approximately $908 million.
