Tor Olav Troim-controlled Golar LNG plans to secure a charter deal in 2025 for its recently green-lighted new Mk II LNG carrier-to-floating LNG production unit project.
In its third-quarter results, Golar said it continues to make “significant positive progress” on its FLNG commercial opportunities. Adding that it has the earliest available FLNG capacity globally.
“We are progressing commercial and technical work on FLNG projects in the Americas, West Africa, the Middle East and South East Asia,” the company said. “We target to secure a charter for our MKII FLNG within 2025.”
In September, Golar signed an engineering, procurement and construction agreement with China’s CIMC Raffles to convert the 148,500-cbm LNG carrier Fuji LNG (built 2004) into the company’s first 3.5 mtpa MK II FLNG unit.
The budget for the conversion is estimated at $2.2bn of which Golar had spent $0.4bn as of 30 September 2024.
The Fuji LNG is due to enter the yard in early 2025 and the MK II FLNG is scheduled for delivery in the fourth quarter of 2027.
Golar has an option with the yard for a second MkII conversion for 2028 handover.
“In view of the tight global shipyard situation created by large shipping and FPSO orders, Golar sees the availability of early yard slots at credible shipyards as a significant competitive and strategic advantage,” the company said.
On its existing two FLNG units, Golar said Argentinian shale gas developer Pan American Energy issued a 20-year reservation notice in October for its currently Cameroon-based LNG floater Hilli.
Golar said this includes a reservation fee should the project not materialise, and ends Golar’s option to nominate an alternative FLNG to service the contract to monetise the Vaca Muerta shale deposit in the Neuquen Basin.
Work on definitive contracts is ongoing and a final investment decision is expected within the first quarter of 2025.
LNG exports are scheduled to start within 2027.
Golar said it will also hold a 10% stake in recently established Southern Energy, a joint venture with Pan American that will be responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.
The company said that linking the Vaca Muerta formation via a dedicated pipeline could support a multi-FLNG project in the future.
Golar said its BP-chartered FLNG unit Gimi, off Mauritania and Senegal, has taken on commissioning volumes from the 173,644-cbm LNG carrier British Sponsor (built 2019). Activity will ramp up with the arrival of the project’s floating production storage and offloading unit.
The company said commercial operations are expected within the first half of 2025 which will trigger the start of a 20-year lease-and-operate agreement on the unit, which is in the process of being refinanced.
Golar slumped to a third-quarter net loss of $36.0m from a net profit of $113.9m in the same period of 2023.
The company highlighted mark-to-market losses of $74m and $16m loss on interest rate swaps.
Total operating revenue for three months slipped to $64.8m from $67.3m year on year.
