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$ 1.6 billion. The total budget for the MK II FLNG conversion is
US$ 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 US$ 0.3 billion to date inclusive of
the conversion candidate, engineering and long lead items which are
now 63% complete.
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$ 0.5 billion of adjusted annual EBITDA, before
commodity exposure.
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 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. We look forward to working with CIMC and Black & Veatch
towards another successful FLNG delivery and hope to further expand
the relationship with potential additional MK II FLNG units.”
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
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