Golar reaches FID on $2.2-billion FLNG conversion

HAMILTON, September 18, 2024 – Nasdaq-listed Golar LNG has signed an EPC contract with CIMC Raffles for a MK II FLNG production vessel with a liquefaction capacity of 3.5 million tonnes of LNG per year, Golar announced on Wednesday.

The Golar MK II design is an evolution of the MK I design used for Golar’s FLNG Hilli Episeyo and FLNG Gimi vessels and is also based on converting an existing LNG carrier to an FLNG. The MK II project will utilise the Golar-owned LNG carrier Fuji LNG, whose storage capacity is 148,500 cubic metres.

The total EPC price is USD 1.6 billion, while the total budget for the MK II FLNG conversion is USD 2.2 billion excluding financing costs and including the conversion vessel, yard supervision, spares, crew, training, contingencies, initial bunker supply and voyage-related costs to deliver the FLNG to its operational site, which was not announced.

Under the agreement with CIMC, Black & Veatch will provide its licensed PRICO technology, perform detailed engineering and process design, specify and procure topside equipment and provide commissioning support for the FLNG topsides and liquefaction process. The work is similar to that undertaken for the construction of the FLNG Hilli Episeyo and FLNG Gimi.

“With a delivered price of around USD 600/tonne of liquefaction capacity and an attractive Q4 2027 delivery, we believe today’s FLNG order is well positioned to offer prospective clients an attractive time-to-market to enable gas monetisation whilst driving value for Golar,” said Golar CEO Karl Fredrik Staubo.

As part of the EPC agreement, Golar has an option for a second MK II FLNG conversion slot at CIMC for delivery within 2028.

Photo of FLNG Gimi courtesy of Golar LNG

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