Golar LNG (NASDAQ: GLNG) orders 4th FLNG, boosting capacity above 12 MTPA
Rhea-AI Filing Summary
Golar LNG Limited has executed an Engineering, Procurement and Construction agreement with CIMC Raffles for its fourth Floating LNG Production vessel and second MKII design FLNG, with nameplate liquefaction capacity of 3.5 MTPA. The conversion project has a total budget of approximately US$2.45 billion delivered to its prospective site. Delivery from the shipyard is expected by year end 2029, which the company describes as the earliest available FLNG capacity globally. The order, using Black & Veatch’s PRICO® liquefaction technology, will increase Golar’s controlled liquefaction capacity by about 40% to above 12 MTPA. A donor vessel has been secured, and Golar targets a long-term charter for the unit, with advanced commercial discussions for employment in progress.
Positive
- New MKII FLNG order adds 3.5 MTPA and lifts controlled liquefaction capacity by about 40% to above 12 MTPA, reinforcing Golar’s FLNG market position.
- Earliest available FLNG capacity with expected delivery by year end 2029 may provide timing and commercial advantages in securing long-term contracts.
Negative
- The 4th FLNG conversion project involves a large capital commitment of approximately US$2.45 billion before a long-term charter contract is finalized, adding project and commercialization risk.
Key Figures
Project budget: US$2.45 billion
Nameplate liquefaction capacity: 3.5 MTPA
Capacity increase: about 40%
+3 more
6 metrics
Project budget
US$2.45 billion
Total budget for the 4th FLNG conversion project delivered to its prospective site
Nameplate liquefaction capacity
3.5 MTPA
Annual liquefaction capacity of the new MKII FLNG vessel
Capacity increase
about 40%
Increase in Golar’s controlled liquefaction capacity due to the new FLNG
Total controlled liquefaction capacity
above 12 MTPA
Controlled liquefaction capacity after adding the 4th FLNG
Expected delivery
year end 2029
Target shipyard delivery date for Golar’s 4th FLNG
Number of FLNG units
4
Total FLNG units ordered or owned after this new MKII FLNG order
Key Terms
Floating LNG Production, Engineering, Procurement and Construction, MTPA, PRICO® liquefaction technology, +1 more
5 terms
Floating LNG Production technical
"second MKII design Floating LNG Production (“FLNG”) vessel"
Engineering, Procurement and Construction technical
"executed an Engineering, Procurement and Construction (“EPC”) agreement"
A contract model where a single firm is responsible for designing a project, buying the necessary materials and equipment, and building it to completion — like hiring one general contractor to plan, shop for, and construct a house. Investors care because these contracts concentrate responsibility and risk in one party: a fixed-price, turnkey deal can offer predictable revenue and clearer timelines, but cost overruns, delays or quality problems can directly affect a contractor’s profits and a project owner’s returns.
MTPA financial
"with an annual liquefaction capacity of 3.5 Million Tons of LNG Per Annum (“MTPA”)"
mtpa stands for million tonnes per annum and is a measure of how much material a facility or industry — such as mining, oil, gas, chemicals, or cement — can produce in one year. Investors care because it quantifies production capacity like a factory’s hourly output, which helps estimate potential revenue, assess supply impact on prices, and compare scale between projects or companies.
PRICO® liquefaction technology technical
"Black & Veatch will provide its licensed PRICO® liquefaction technology"
long-term charter contract financial
"Golar targets a long-term charter contract for the unit"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did Golar LNG (GLNG) announce regarding a new FLNG unit?
Golar LNG announced it ordered its fourth FLNG unit, a second MKII design FLNG, under an EPC agreement with CIMC Raffles. The project expands its floating LNG production fleet and uses Black & Veatch PRICO® liquefaction technology.
What is the budget and capacity of Golar LNG’s new FLNG project (GLNG)?
The 4th FLNG conversion project has a total budget of approximately US$2.45 billion and a nameplate liquefaction capacity of 3.5 Million Tons of LNG Per Annum (MTPA), adding substantial floating LNG production capacity.
When is Golar LNG’s new FLNG expected to be delivered?
The new MKII FLNG is expected to be delivered from the shipyard by year end 2029. Golar states this timing will make it the earliest available FLNG capacity globally, potentially attractive for future gas monetization projects.
How does the new FLNG order affect Golar LNG’s total liquefaction capacity?
The new FLNG order increases Golar’s controlled liquefaction capacity by about 40% to above 12 MTPA. This significant expansion further supports its strategy as a focused FLNG company and leading owner of FLNG units.
Does Golar LNG (GLNG) have a charter in place for the 4th FLNG unit?
Golar targets a long-term charter contract for the new FLNG unit, and advanced commercial discussions for its employment are in progress. However, the company has not disclosed a finalized contract in this disclosure.