Seatrium and Golar Sign LOI for Third FLNG Conversion, EPC Expected in 2026

en.Wedoany.com Reported - Seatrium and Golar LNG have signed a letter of intent for a potential third floating liquefied natural gas (FLNG) conversion project, with plans to enter into an engineering, procurement, and construction (EPC) contract in the second half of 2026.

Under the letter of intent, the parties will carry out technical design development and project definition work, with Golar providing upfront funding to Seatrium for pre-EPC preparation. No vessel has been designated for conversion yet, and the capacity and deployment location have not been disclosed.

The two companies have a collaboration history spanning more than two decades. Seatrium delivered the FLNG Hilli Episeyo, with an annual capacity of 2.4 million tonnes, in 2017, and the unit is currently deployed at the Kribi gas field offshore Cameroon; the FLNG Gimi, with an annual capacity of 2.7 million tonnes, was delivered in 2023 and is now operated for bp and Kosmos Energy at the Greater Tortue Ahmeyim gas field offshore Mauritania and Senegal.

Hilli Episeyo has now entered Seatrium's yard for technical modifications, cold-weather upgrades, and installation of a soft-yoke mooring system, after which it is planned to be redeployed in San Matías Bay, Argentina, for 20 years, liquefying gas produced from the Vaca Muerta shale formation starting in 2027. A previous attempt at a third conversion project involving the vessel Golar Gandria has lapsed. The now-proposed serialized construction approach aims to incorporate the experience from Hilli and Gimi into a standardized template to reduce execution risk, shorten schedules, and lower unit costs.

With industry projections of a 60% growth in global LNG demand by 2040, developers remain interested in flexible floating liquefaction solutions that can be deployed faster than comparable onshore terminals.