Final Investment Decision for MK II 3.5mtpa FLNG
Golar LNG has signed an Engineering, Procurement, and Construction (EPC) agreement with CIMC Raffles for a MK II Floating LNG Production (FLNG) vessel, boasting a 3.5 million tons per annum (MTPA) liquefaction capacity. The project will employ Black & Veatch's PRICO® technology for engineering and process design, similar to Golar's existing FLNG assets. The total EPC cost is $1.6 billion, with a full conversion budget of $2.2 billion, and the delivery is expected in Q4 2027. Golar has already spent $0.3 billion to date. The MK II design, an upgrade from MK I, will leverage the Golar-owned LNG carrier Fuji LNG and promises efficiency improvements and modular construction. Golar has secured an option for a second MK II FLNG conversion with CIMC, aimed for delivery within 2028. The MK II FLNG could generate approximately $0.5 billion in EBITDA annually, significantly enhancing Golar's market position by increasing its liquefaction capacity by 70% to 8.6 MTPA.
Golar LNG ha firmato un accordo di Ingegneria, Approvvigionamento e Costruzione (EPC) con CIMC Raffles per una nave di produzione di LNG galleggiante MK II, con una capacità di liquefazione di 3,5 milioni di tonnellate all'anno (MTPA). Il progetto utilizzerà la tecnologia PRICO® di Black & Veatch per la progettazione ingegneristica e dei processi, simile agli asset FLNG esistenti di Golar. Il costo totale dell'EPC è di 1,6 miliardi di dollari, con un budget totale di conversione di 2,2 miliardi di dollari, e la consegna è prevista per il Q4 2027. Golar ha già speso fino ad oggi 0,3 miliardi di dollari. Il design MK II, un aggiornamento rispetto al MK I, sfrutterà la nave gasiera di proprietà di Golar, Fuji LNG, e promette miglioramenti in termini di efficienza e costruzione modulare. Golar ha ottenuto un'opzione per una seconda conversione MK II FLNG con CIMC, prevista per la consegna entro il 2028. Il MK II FLNG potrebbe generare annualmente circa 0,5 miliardi di dollari in EBITDA, migliorando significativamente la posizione di mercato di Golar aumentando la sua capacità di liquefazione del 70% fino a 8,6 MTPA.
Golar LNG ha firmado un acuerdo de Ingeniería, Adquisiciones y Construcción (EPC) con CIMC Raffles para un buque de producción de LNG flotante MK II, con una capacidad de licuefacción de 3,5 millones de toneladas por año (MTPA). El proyecto utilizará la tecnología PRICO® de Black & Veatch para el diseño de ingeniería y procesos, similar a los activos FLNG existentes de Golar. El costo total del EPC es de 1.6 mil millones de dólares, con un presupuesto total de conversión de 2.2 mil millones de dólares, y se espera la entrega en el Q4 2027. Golar ya ha gastado hasta la fecha 0.3 mil millones de dólares. El diseño MK II, una mejora del MK I, aprovechará el transportador de LNG Fuji LNG, de propiedad de Golar, y promete mejoras en eficiencia y construcción modular. Golar ha asegurado una opción para una segunda conversión MK II FLNG con CIMC, con el objetivo de entrega en 2028. El MK II FLNG podría generar aproximadamente 0.5 mil millones de dólares en EBITDA anualmente, mejorando significativamente la posición de mercado de Golar al aumentar su capacidad de licuefacción en un 70% hasta 8.6 MTPA.
Golar LNG는 CIMC Raffles와 3.5백만 톤/년 (MTPA)의 액화 용량을 자랑하는 MK II 부유식 LNG 생산 (FLNG) 선박을 위한 엔지니어링, 조달 및 건설 (EPC) 계약을 체결했습니다. 이 프로젝트는 Golar의 기존 FLNG 자산과 유사하게 블랙 앤 비치의 PRICO® 기술을 사용하여 엔지니어링 및 공정 설계를 수행합니다. 총 EPC 비용은 16억 달러이며, 전체 전환 예산은 22억 달러로 예상되며, 인도는 2027년 4분기로 예정되어 있습니다. Golar는 현재까지 3억 달러를 이미 지출했습니다. MK II 디자인은 MK I에서 업그레이드된 것으로, Golar 소유의 LNG 운반선인 후지 LNG를 활용하여 효율성을 개선하고 모듈형 건설을 약속합니다. Golar는 CIMC와 함께 두 번째 MK II FLNG 전환에 대한 옵션을 확보했으며, 2028년 이내에 인도될 예정입니다. MK II FLNG는 연간 약 5억 달러의 EBITDA를 생성할 수 있어 Golar의 시장 위치를 크게 향상시키고, 액화 용량을 70% 증가시켜 8.6 MTPA에 이를 것으로 예상됩니다.
Golar LNG a signé un accord d'Ingénierie, d'Achat et de Construction (EPC) avec CIMC Raffles pour un navire de production de LNG flottant MK II, doté d'une capacité de liquéfaction de 3,5 millions de tonnes par an (MTPA). Le projet utilisera la technologie PRICO® de Black & Veatch pour l'ingénierie et la conception des processus, similaire aux actifs FLNG existants de Golar. Le coût total de l'EPC est de 1,6 milliard de dollars, avec un budget total de conversion de 2,2 milliards de dollars, et la livraison est attendue au Q4 2027. Golar a déjà dépensé 0,3 milliard de dollars jusqu'à présent. Le design MK II, une mise à niveau du MK I, utilisera le transporteur de LNG appartenant à Golar, le Fuji LNG, et promet des améliorations d'efficacité et de construction modulaire. Golar a obtenu une option pour une deuxième conversion MK II FLNG avec CIMC, prévue pour livraison d'ici 2028. Le MK II FLNG pourrait générer environ 0,5 milliard de dollars d'EBITDA par an, améliorant ainsi considérablement la position de Golar sur le marché en augmentant sa capacité de liquéfaction de 70% à 8,6 MTPA.
Golar LNG hat einen Vertrag über Ingenieurleistungen, Beschaffung und Bau (EPC) mit CIMC Raffles für ein MK II schwimmendes LNG-Produktionsschiff mit einer Verflüssigungskapazität von 3,5 Millionen Tonnen pro Jahr (MTPA) unterzeichnet. Das Projekt wird die PRICO®-Technologie von Black & Veatch für Ingenieur- und Prozessdesign einsetzen, ähnlich wie bei den bestehenden FLNG-Assets von Golar. Die Gesamtkosten für das EPC belaufen sich auf 1,6 Milliarden Dollar, mit einem Gesamtbudget für die Umwandlung von 2,2 Milliarden Dollar, und die Lieferung wird für Q4 2027 erwartet. Golar hat bisher bereits 0,3 Milliarden Dollar ausgegeben. Das MK II Design, eine Verbesserung des MK I, wird den im Besitz von Golar befindlichen LNG-Tanker Fuji LNG nutzen und verspricht Effizienzsteigerungen und modulare Bauweise. Golar hat sich eine Option für eine zweite MK II FLNG-Umwandlung mit CIMC gesichert, die für die Lieferung bis 2028 geplant ist. Die MK II FLNG könnte jährlich ca. 0,5 Milliarden Dollar EBITDA generieren und Golar's Marktposition erheblich stärken, da dadurch die Verflüssigungskapazität um 70% auf 8,6 MTPA erhöht wird.
- Signed EPC agreement for MK II FLNG with CIMC Raffles.
- Annual liquefaction capacity of 3.5 MTPA.
- Total EPC cost: $1.6 billion; total budget: $2.2 billion.
- Expected delivery in Q4 2027.
- Annual EBITDA potential: $0.5 billion.
- Increases Golar's liquefaction capacity by 70% to 8.6 MTPA.
- None.
Insights
The announcement of Golar LNG's $2.2 billion investment in a new MK II FLNG vessel is a significant move that could substantially boost the company's future earnings. With an expected annual EBITDA of $500 million, this project could provide a strong return on investment, potentially doubling the company's current EBITDA. The
Golar's MK II FLNG project represents a significant advancement in floating LNG technology. The 3.5 MTPA capacity is impressive for a floating facility, increasing Golar's total controlled liquefaction capacity by
The timing of Golar's MK II FLNG project aligns well with projected growth in global LNG demand. With delivery scheduled for Q4 2027, it positions the company to capitalize on the expected supply gap in the late 2020s. The competitive pricing of
Golar LNG Limited (“Golar” or “the Company”) announces today that it has signed an Engineering, Procurement and Construction (“EPC”) agreement with CIMC Raffles (“CIMC”) for a MK II Floating LNG Production (“FLNG”) vessel with an annual liquefaction capacity of 3.5 million tons of LNG per annum (“MTPA”). Under the agreement with CIMC, 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 EPC price is US
Yard selection for the MK II FLNG conversion was concluded two years ago. CIMC, Black & Veatch and Golar have subsequently spent approximately 350,000 man-hours optimizing the conversion process and de-risking project execution. 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 US
Golar CEO, Karl Fredrik Staubo commented: “We are pleased to announce the ordering of a MK II FLNG, a significant milestone for Golar and our partners CIMC and Black & Veatch. 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
Wang Jianzhong, CEO and President of CIMC Raffles, stated that “The signing of this new project further solidifies CIMC’s leadership position in offshore projects. It demonstrates CIMC’s ability to handle large, complex projects that meet the highest industry standards. CIMC will continue to focus on the independent development and manufacturing of high-end offshore equipment, committed to providing high-quality, innovative solutions for the global energy market.”
Black & Veatch’s Fuels & Natural Resources sector President Laszlo von Lazar said “We are pleased to be working with CIMC and Golar on the MK II FLNG, following our support for Golar’s two previous Floating LNG assets. The MK II represents our 6th floating LNG project to take a final investment decision utilizing our industry leading PRICO® liquefaction technology. The MK II demonstrates a clear commitment to reliable, consistent energy through Floating LNG, to help meet global demands during the energy transition.”
About Golar
Golar LNG is a NASDAQ listed maritime LNG infrastructure company. Through its 75-year history, the Company has pioneered maritime LNG infrastructure including the world's first Floating LNG liquefaction terminal (FLNG) and Floating Storage and Regasification Unit (FSRU) projects based on the conversion of existing LNG carriers. Today Golar is a focused FLNG company, and the only proven provider of FLNG as a service. Golar owns the world’s largest fleet of FLNG units by annual liquefaction capacity, with a market leading operational track record.
About CIMC Raffles
Yantai CIMC Raffles Offshore Limited, formerly known as Yantai Shipyard, is a subsidiary company of CIMC Group. Currently, CIMC Raffles has five Offshore and Marine Engineering centers located in Yantai, Shenzhen, Shanghai, Norway and Sweden and three construction bases located in Yantai, Haiyang, and Longkou. The main business of CIMC Raffles includes the design, construction, repair & conversion, and leasing of drilling rigs, production units, offshore supply vessels, ocean farming facilities, offshore wind vessels, etc., aiming to provide a turn-key solution to clients. CIMC Raffles is always dedicated to providing innovative equipment and solutions to the sustainable development of offshore and marine resources through technology innovation and lean management.
About Black & Veatch
Black & Veatch is a 100-percent employee-owned global engineering, procurement, consulting and construction company with a more than 100-year track record of innovation in sustainable infrastructure. Since 1915, we have helped our clients improve the lives of people around the world by addressing the resilience and reliability of our most important infrastructure assets. Follow us on www.bv.com and on LinkedIn, Facebook, X (Twitter) and Instagram.
Media Contact Information:
BRUCE ERIC ANDERSON | +1 952-896-0835 | Media@bv.com
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflects management’s current expectations, estimates and projections about its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” or the negative of these terms and similar expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Golar LNG Limited undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise, unless required by applicable law.
Hamilton, Bermuda
September 17, 2024
Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
FAQ
What is the annual liquefaction capacity of Golar's MK II FLNG?
When is the expected delivery date for Golar's MK II FLNG?
How much has Golar spent on the MK II FLNG project to date?
What is the total EPC cost for Golar's MK II FLNG?
What is the total budget for the MK II FLNG conversion?
What is the annual EBITDA potential of the MK II FLNG?
How much will Golar's liquefaction capacity increase with the MK II FLNG?
