Golar orders fourth FLNG in $2.45 billion conversion project

Rendering of Golar MK II FLNG. Golar LNG has awarded Yantai CIMC Raffles Offshore an engineering, procurement and construction contract for its fourth floating LNG production vessel.

Golar LNG has awarded Yantai CIMC Raffles Offshore an engineering, procurement and construction contract for its fourth floating LNG production vessel, a 3.5 million-tonne-per-year (mtpa) unit expected to be delivered from the shipyard by the end of 2029.

The approximately $2.45 billion project will be Golar’s second FLNG based on its MKII design. The company has secured a donor vessel for the conversion and said the new unit will be the earliest available FLNG capacity globally when completed.

The vessel will be similar to the 3.5 mtpa FLNG Esperanza, Golar’s first MKII unit, which is currently under construction at the CIMC Raffles shipyard in Yantai, China.

Golar expects efficiencies from repeating the MKII design and having the two vessels under construction at the same shipyard during overlapping periods.

Black & Veatch will provide its PRICO liquefaction technology for the project. Its scope also includes detailed engineering and process design, specification and procurement of topside equipment, and commissioning support for the FLNG topsides and liquefaction process.

Golar said it has already made commitments to equipment suppliers to secure manufacturing slots for long-lead items, helping support the targeted 2029 delivery schedule.

The fourth FLNG will increase Golar’s controlled liquefaction capacity by approximately 40% to more than 12 mtpa. The company intends to place the vessel under a long-term charter and said advanced commercial discussions for its deployment are underway.

“We believe this FLNG order, combining the world’s earliest available FLNG delivery and Golar’s market-leading operational track record, is well positioned to provide prospective clients with an attractive gas monetization solution, whilst driving value for Golar,” CEO Karl Fredrik Staubo said.

The order also expands Golar’s relationship with CIMC Raffles before construction of the first MKII vessel has been completed.

Wang Jianzhong, CEO and president of CIMC Raffles, said experience gained during construction of the first vessel and reuse of the MKII design are expected to improve efficiency and schedule certainty on the second project.

“With the experience gained from the first MKII project and the significant synergies of the repeat design, we are confident in delivering this project with greater efficiency, quality and schedule certainty,” Wang said.

The MKII concept is based on converting an existing LNG carrier into a floating liquefaction facility rather than constructing a purpose-built FLNG vessel. Golar’s latest project continues that conversion strategy, with the donor vessel already secured ahead of the EPC award.