Golar Takes FID for MK II FLNG
Golar LNG signed an agreement with CIMC Raffles for a MK II Floating LNG Production (FLNG) vessel with an annual liquefaction capacity of 3.5 million tons of LNG per annum (mtpa).
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, similar to Black & Veatch’s role in the construction of Golar’s existing assets, the FLNG Hilli and FLNG Gimi.
The Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG Gimi and is also based on the conversion of an existing LNG carrier to an FLNG. The MK II design allows for a modularization of the construction process as well as further efficiency and operability advances based on learnings from previous experience on constructing and operating our existing FLNG assets.
The project will utilize the Golar owned LNG carrier Fuji LNG with a storage capacity of 148,500 m3.
The total contract price is $1.6 billion. The total budget for the MK II FLNG conversion is $2.2 billion, inclusive of the conversion vessel, yard supervision, spares, crew, training, contingencies, initial bunker supply and voyage related costs to deliver the FLNG to its operational site, excluding financing costs.
The MK II FLNG is expected to be delivered in Q4 2027. Out of the total conversion price, Golar has already spent $0.3 billion to date inclusive of the conversion candidate, engineering and long lead items which are now 63% complete.
As part of the EPC agreement Golar has also secured an option for a second MK II FLNG conversion slot at CIMC for delivery within 2028.
The 2027 delivery makes the MK II FLNG the earliest available floating liquefaction capacity globally. Based on potential charter terms in line with the most recent long term FLNG charter agreements, the MK II FLNG has earnings potential of approximately $0.5 billion of adjusted annual EBITDA, before commodity exposure.
Golar CEO, Karl Fredrik Staubo commented: “The ordering of the MK II FLNG strengthens Golar’s position as the market leading owner of FLNGs, increasing our controlled liquefaction capacity by about 70% to 8.6 MTPA. With a delivered price of around USD 600/ton 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 monetization, whilst driving value for Golar.”