Final investment decision for MK II 3.5mtpa FLNG | 18.09.24

Golar LNG Limited (“Golar” or “the Company”) today announces 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 tonnes per annum (“MTPA”) of LNG. Under the agreement with CIMC, Black & Veatch will supply 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 asset, the FLNG Hill and FLNG I am.

The Golar MK II design is an evolution of FLNG’s MK I design Hill and FLNG I am and is also based on the conversion of an existing LNG carrier to an FLNG. The MK II design allows for modularization of the construction process as well as further improvements in efficiency and operability based on previous experience in building and operating our existing FLNG assets. The project will utilize Golar’s 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, including the conversion vessel, yard supervision, spare parts, crew, training, contingencies, initial bunkering and voyage related costs to bring the FLNG to the operational location, excluding financing costs. The MK II FLNG is expected to be delivered in Q4 2027. Of the total conversion price, Golar has already spent US$0.3 billion to date, including the conversion candidate, engineering and long lead time items which are now 63% complete.

The yard selection for the MK II FLNG conversion was completed two years ago. CIMC, Black & Veatch and Golar subsequently spent approximately 350,000 man hours optimizing the conversion process and de-risking the project execution. As part of the EPC agreement, Golar also secured an option for a second MK II FLNG conversion slot with CIMC for delivery within 2028.

Delivery in 2027 makes the MK II FLNG the earliest available floating liquefaction capacity globally. Based on potential charter terms consistent with the most recent long-term FLNG charter agreements, the MK II FLNG has an earning potential of approximately US$0.5 billion in adjusted annual EBITDA, before commodity exposure.

Golar CEO, Karl Fredrik Staubo, commented: “We are pleased to announce the order for a MK II FLNG, a significant milestone for Golar and our partners CIMC and Black & Veatch. The order for the MK II FLNG strengthens Golar’s ​​position as a market leader in FLNGs, increasing our controlled liquefaction capacity by approximately 70% to 8.6 MTPA. With a delivered price of approximately USD 600/ton liquefaction capacity and an attractive delivery in Q4 2027, we believe today’s FLNG order is well positioned to provide potential customers with an attractive time to market to enable gas monetization, while enhancing value for Golar. We look forward to working with CIMC and Black & Veatch for 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 consolidates 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 production of high-quality offshore equipment, committed to providing high-quality, innovative solutions for the global energy market.”

Laszlo von Lazar, President of Black & Veatch’s Fuels & Natural Resources Sector, said: “We are pleased to partner 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 reach a final investment decision utilizing our industry-leading PRICO® liquefaction technology. The MK II demonstrates a clear commitment to reliable, consistent energy via Floating LNG, to help meet global demand during the energy transition.”

About Golar

Golar LNG is a Nasdaq-listed marine LNG infrastructure company. Over its 75-year history, the company has pioneered marine 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 based on annual liquefaction capacity, with an industry-leading operational track record.

About CIMC Lotteries

Yantai CIMC Raffles Offshore Limited, formerly known as Yantai Shipyard, is a subsidiary of CIMC Group. Currently, CIMC Raffles has five Offshore and Marine Engineering centers in Yantai, Shenzhen, Shanghai, Norway and Sweden, and three construction bases in Yantai, Haiyang and Longkou. CIMC Raffles’ main business includes the design, construction, repair and conversion, and leasing of drilling platforms, production units, offshore supply vessels, ocean farming facilities, offshore wind vessels, etc., with the aim of providing a turnkey solution to customers. CIMC Raffles has always been committed to providing innovative equipment and solutions for the sustainable development of offshore and marine resources through technological innovation and lean management.

About Black & Veatch

Black & Veatch is a 100 percent employee-owned global engineering, procurement, consulting and construction firm with a track record of more than 100 years 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 further LinkedIn, Facebook, X (Twitter) And Instagram.
Media contact information:
BRUCE ERIC ANDERSON | +1 952-896-0835 | [email protected]

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) that reflect management’s current expectations, estimates and projections about its business. All statements, other than statements of historical fact, that address activities or events that will, would, could or may occur in the future are forward-looking statements. Words such as “may”, “could”, “should”, “would”, “expect”, “plan”, “anticipate”, “intend”, “predict”, “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 difficult to predict. Accordingly, actual outcomes and results may differ materially from those 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 publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Hamilton, Bermuda
September 17, 2024

Investor inquiries: +44 207 063 7900

Karl Fredrik Staubo – CEO

Eduardo Maranhão – Financial Director

Stuart Buchanan – Head of Investor Relations

This information is subject to the disclosure requirements of Section 5-12 of the Norwegian Securities Trading Act.