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Golar LNG Seeks Contracts for Innovative FLNG Vessel
Golar LNG Ltd is actively seeking contacts for its newly acquired vessel, the Fuji, which is currently undergoing conversion into a state-of-the-art FLNG unit.
This strategic initiative aligns with Golar's ongoing commitment to enhance its operational capabilities and expand its market presence.
Golar’s latest project involves repurposing the Fuji LNG carrier into the MK II FLNG vessel, which is expected to have a liquefaction capacity of 3.5 million tons per annum. This conversion is part of a broader $2.2 billion budget that includes engineering, procurement, and construction (EPC) services provided by CIMC Raffles and Black & Veatch, leveraging advanced PRICO® technology developed by Black and Veatch for optimal efficiency.
The Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG Gimi, with the latter stationed at bp’s Greater Tortue Ahmeyim project on the Mauritania and Senegal maritime border.
Speaking at African Energy Week (AEW) 2024: Invest in African Energies, Golar LNG Chief Commercial Officer, Federico Petersen stated that the conversion of the Fuji represents a significant milestone for Golar LNG as it continues to enhance its capabilities in the FLNG market. “We are looking for strategic partners who share our vision and can contribute to the success of this project,” he said.
The anticipated delivery date for the converted vessel is set for the fourth quarter of 2027. “This new asset will not only augment our existing fleet but also position us to meet increasing global demand for LNG,” said Petersen, adding that Golar LNG has already invested $300 million into this project, with 63% of long lead items completed.
The earnings potential for the MK II FLNG is estimated at approximately $500 million in adjusted annual EBITDA before commodity exposure. In addition to the Fuji conversion, Golar LNG holds a strong financial position with $900 million in cash and a market capitalization of $4 billion.
“Our backlog of contracts exceeds $9 billion, underscoring our robust operational foundation and growth prospects. We invite interested investors to join us as we continue to innovate and lead in the FLNG sector, providing comprehensive solutions that mitigate operational risks while ensuring sustainable energy production,” said Petersen.