Golar revealed this in its second-quarter results report on Thursday saying that long lead items already ordered are now 63 percent complete.
If the order is placed within this timeframe, the 3.5 mtpa MKII FLNG will be delivered within 2027, the firm said.
According to Golar, the “all-in FLNG price remains at an industry-leading ~$600 million/mtpa.”
This includes donor vessel, EPC, transport, installation and commissioning, all owner’s costs, insurances, allowances and contingencies, excluding financing costs.
“As part of the yard discussions, we have also secured an option for a second MKII FLNG for delivery within 2028,” Golar said.
Golar exercised its option last year to acquire Fuji LNG, which it aims to convert to a floating LNG producer.
The company took delivery of Fuji LNG on March 4, 2024 and said that it will trade on a multi-month charter ahead of its expected transfer to the yard for FLNG conversion.
The company did not mention the name of the yard.
In November last year, Singapore’s Seatrium delivered Golar’s converted floating LNG producer, Gimi, which serves BP’s Greater Tortue Ahmeyim FLNG project offshore Mauritania and Senegal.
This is the world’s second converted floating LNG producer and joined Golar’s Hilli, also converted by Seatrium and currently located offshore Cameroon’s Kribi.
Golar LNG’s 3.5 mtpa MKII FLNG (Image: Golar LNG)
Golar previously said its focus is on redeployment of its FLNG Hilli following the end of the FLNG’s current charter in July 2026, and thereafter ordering and securing commercial terms for a contemplated MKII FLNG.
The company recently entered into definitive agreements with Argentina’s Pan American Energy for a 20-year deployment of Hilli in Argentina.
The FLNG project will monetize Argentine gas, tapping into the vast resources from the Vaca Muerta shale formation in the Neuquina Basin, the world’s second-largest shale gas resources.
Golar expects the project to start LNG exports within 2027.
According to Golar, a final investment decision is expected before year-end subject to receipt of regulatory and environmental approvals and satisfaction of customary closing conditions.
With a nameplate capacity of 2.45 mtpa and assuming 90 percent capacity utilization, a re-deployed FLNG Hilli Episeyo is expected to generate an Adjusted Ebtda per MMBtu of about $2.6, equivalent to annual Adjusted Ebidta of about $300 million, with a commodity-linked pricing element additional to this, Golar said.
As part of the agreements, Golar will also hold a 10 percent stake in Southern Energy, a dedicated joint venture with PAE, responsible for the purchase of domestic natural gas, operations, and sale and marketing of LNG volumes from Argentina.
“This initiative is envisaged to be the first phase of a multi-vessel project. In addition to FLNG Hilli Episeyo, this opportunity represents one of several potential deployment prospects for a 3.5 mtpa MKII FLNG,” Golar said in the financial report.
Image: Golar LNG
“Golar’s offering as the only proven operator of FLNG as a service and planned available liquefaction capacity from 2027/2028 continues to be met by strong prospective client interest for additional FLNG projects,” the company said in the report.
FLNG project opportunities in West Africa, South America, the Middle East and Southeast Asia are at various stages of development, it said.
In that regard, the commercial team has been further expanded with two senior resources, according to the firm.
Golar and energy giant BP, the operator of the delayed Greater Tortue Ahmeyim project located offshore Mauritania and Senegal, recently resolved a dispute related to daily payments for Golar’s converted FLNG, Gimi.
The floating LNG player is now contractually entitled to receive daily payments from January 10, 2024 until the commercial operations date.
Back in 2019, the two firms signed a 20-year lease and operate agreement for the FLNG to work on the GTA field.
Golar announced in January this year the arrival of the FLNG at the site of BP’s GTA project.
However, the FLNG then proceeded to moor offshore Tenerife while awaiting completion of the necessary preparatory activities. BP said the unit arrived at the GTA hub in February.
BP’s project has been delayed due to the subsea scope and the project’s FPSO arrived at the GTA project in May.
Following the commercial reset of pre-COD contractual arrangements, Golar, BP and Kosmos Energy have agreed to use an LNG commissioning cargo to accelerate the commissioning schedule.
A BP and Kosmos procured LNG cargo is expected to arrive at the GTA hub within August, Golar said.
“The commissioning cargo is intended to parallel process the commissioning of the GTA FPSO and FLNG Gimi, and targets to shorten the time to COD,” Golar said.
First LNG is expected in the fourth quarter of 2024.
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