Golar LNG, the operator of floating liquefied natural gas (FLNG) facility, announced that it is securing shipyard slot and long-lead equipment for its planned fourth FLNG. It is in talks with three shipyards on potential design and construction schedules and expects to complete negotiations and sign space reservation agreements soon.
According to reports, Golar LNG is considering design options including MK I, MK II and MK III FLNG, with liquefaction capacities ranging from 2 million to 5.4 million tons per year (mtpa). The shipyards involved in the negotiations include:
CIMC Raffles Offshore Engineering Pte Ltd (CIMC Raffles) has received an option order from Golar LNG for FLNG conversion equipment with a maximum liquefaction capacity of 3.5 million tons per year.
Samsung Heavy Industries, Golar LNG is negotiating with the shipyard for an MK III FLNG, which will have a liquefaction capacity of 5.4 million tons per year and will be the largest FLNG ever built.
Seatrium, Golar LNG plans to build an FLNG with a liquefaction capacity of 2-2.7 million tons per year at this shipyard.
“In order to secure attractive delivery, we plan to enter into slot reservations for long lead equipment within Q3 2025,” Golar said in its latest update.
Like its FLNG Hilli and MK II FLNGs, Golar LNG is currently pursuing a fourth FLNG, which will be built without securing a charter contract. The company believes this planned FLNG may be the only one deliverable this decade due to idle shipyard capacity.
In terms of existing projects, Golar LNG’s FLNG Hilli is expected to complete its current charter in July 2026, after which it will enter the shipyard for life extension and upgrades. Under a 20-year charter agreement with Southern Energy S.A. (SESA), FLNG Hilli will be redeployed to Argentina starting in the second quarter of 2027.
Golar LNG’s FLNG Gimi achieved commercial operations in June of this year under a 20-year charter contract with BP. Golar LNG, which holds a 70% stake, expects its share of net proceeds to be approximately US$3 billion. The FLNG, converted from the LNG carrier Gimi at a cost of US$1.3 billion, was completed by Keppel Shipyard, a subsidiary of Seatrium, and is scheduled for delivery at the end of 2023.
The MK II FLNG, converted from the 148,500 cubic meter Moss-class LNG carrier Fuji LNG, cost approximately US$2.2 billion and has a maximum liquefaction capacity of 3.5 million tons per year. The vessel is currently undergoing conversion at CIMC Raffles and is scheduled for delivery in the fourth quarter of 2027. The MK II FLNG is approximately 390 meters long and 70 meters wide.
Based on SESA’s final investment decision made in early August, the MK II FLNG will begin operations in Argentina in 2028 with a 20-year lease term, subject to regulatory approvals.
It is understood that CIMC Raffles and Golar LNG have signed a US$1.6 billion FLNG EPC conversion contract for the Fuji LNG in September 2024. The contract signed on the same day also includes an optional order, which is expected to be delivered in 2028 if it takes effect.
Golar LNG stated that after confirming the shipyard’s engineering, procurement, and construction (EPC) quotation and capacity, it will finalize the design and formally place an order for the fourth FLNG. The company also revealed that after successfully placing the order and securing the charter for the fourth FLNG, it will proceed with the fifth FLNG as planned.