Advertisements

Golar LNG Gives Green Light to FLNG Venture with Final Investment Decision

by Krystal

Golar LNG Ltd. has entered into an engineering, procurement, and construction (EPC) contract with CIMC Raffles for the development of a new MK II Floating Liquefied Natural Gas (FLNG) vessel. The vessel is designed to have an annual liquefaction capacity of 3.5 million tons per annum (MTPA). Black & Veatch will contribute its PRICO technology for the project, which involves detailed engineering, process design, and the procurement of topside equipment, as well as commissioning support.

PRICO, a technology developed by Black & Veatch, is a patented method for liquefying natural gas. It is based on a single mixed refrigerant process and has been in use worldwide for over five decades. The Golar MK II design is an improved version of the MK I design, which was used for the FLNG Hilli and FLNG Gimi. The new design is based on converting an existing LNG carrier into an FLNG, allowing for a more modular construction process and increased efficiency.

Advertisements

The project will use the Fuji LNG carrier owned by Golar, which has a storage capacity of 5.244 million cubic feet (148,500 cubic meters). The total cost for the EPC contract is $1.6 billion, while the overall budget for the FLNG conversion, including the vessel, yard supervision, spares, crew, training, and other related costs, is $2.2 billion. The vessel is expected to be completed by the fourth quarter of 2027. To date, Golar has already invested $300 million in the project, which includes the conversion candidate, engineering, and long-lead items, with 63% of these items now complete.

Advertisements

The yard selection for the FLNG conversion was finalized two years prior. Since then, CIMC, Black & Veatch, and Golar have dedicated approximately 350,000 man-hours to optimizing the conversion process and reducing project risks. As part of the EPC agreement, Golar has also secured an option for a second MK II FLNG conversion at CIMC, with a potential delivery date within 2028.

Advertisements

Golar anticipates that the MK II FLNG, with a delivery date set for 2027, will be the earliest available floating liquefaction capacity on a global scale. The company estimates that, based on potential charter terms similar to recent long-term FLNG charter agreements, the MK II FLNG could generate approximately $500 million in adjusted annual earnings before interest, taxes, depreciation, amortization, and commodity exposure.

Advertisements

You Might Be Interested In

Advertisements
Advertisements

You may also like

oftrb logo

Oftrb.com is a comprehensive energy portal, the main columns include crude oil prices, energy categories, EIA, OPEC, crude oil news, basic knowledge of crude oil, etc.

【Contact us: [email protected]

© 2023 Copyright oftrb.com – Crude Oil Market Quotes, Price Chart live & News [[email protected]]