Golar LNG, a Bermuda-headquartered owner and operator of liquefied natural gas (LNG) midstream infrastructure, has struck an engineering, procurement, and construction (EPC) deal with Yantai CIMC Raffles Offshore (CIMC Raffles) for its fourth floating LNG (FLNG) and second vessel of MKII design.
While revealing its EPC agreement with CIMC Raffles for its fourth FLNG with an annual liquefaction capacity of 3.5 million tons of LNG per annum (mtpa), Golar LNG highlights that this FLNG conversion project has a total budget of approximately $2.45 billion to be delivered to its prospective site. This FLNG is expected to be received from the shipyard by year-end 2029.
The company, which claims that the unit will be the earliest available FLNG capacity globally, emphasizes that the delivery is possible due to its long-standing relationships with equipment suppliers and commitments made during the year to secure attractive delivery slots for long lead items. A donor vessel for the conversion project has been secured.
The newest addition will be the second FLNG of the Golar MKII design, similar to the FLNG Esperanza currently under construction at CIMC Raffles. The firm expects significant synergies to be realized from building a repeat design and from having two units with overlapping construction at the same shipyard. The order follows Golar’s closing of a new $600 million senior secured revolving credit facility (RCF).
As part of the EPC agreement with CIMC Raffles, Black & Veatch will provide its licensed PRICO liquefaction technology, perform detailed engineering and process design, specify and procure topside equipment and provide commissioning support for the FLNG topsides and liquefaction process.
Karl Fredrik Staubo, Golar CEO, commented: “We are pleased to announce the ordering of Golar’s 4th FLNG unit, and our second MKII FLNG with nameplate liquefaction capacity of 3.5 mtpa. 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.”
The MK II FLNG order is perceived to strengthen Golar’s position in the FLNG market, increasing its controlled liquefaction capacity by about 40% to above 12 mtpa. The firm is set on obtaining a long-term charter contract for the unit; thus, it underlines that advanced commercial discussions for employment are in progress.
Wang Jianzhong, CEO and President of CIMC Raffles, stated: “We are very pleased and honored to be selected by Golar for the second MKII FLNG project. Golar’s decision to place a repeat order with CIMC Raffles while the first MKII FLNG is still under construction demonstrates the strong confidence in our
engineering, construction and project execution capabilities, as well as the strength of our partnership.
“CIMC Raffles has always upheld our corporate culture of ‘delivering with excellence and building lasting friendships,’ and we are committed to earning the trust of our customers through reliable delivery and long-term partnership. 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.”
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