Golar LNG Sees 41% Capacity Boost with New FLNG Unit

Golar LNG reported higher second-quarter earnings as its floating liquefied natural gas fleet continued to perform above contracted levels. The company's Chief Executive Officer Karl Fredrik Staubo said that Golar signed an order for a fourth FLNG conversion unit at CIMC Raffles in China, with delivery expected in 2029.

The new unit will represent the earliest available global FLNG capacity and increase Golar-controlled liquefaction capacity by 41%, from 8.6 million tonnes to more than 12 million tonnes on a fully delivered basis. The company said its existing Hilli, Gimi and Esperanza contracts provide an EBITDA backlog of $17 billion through 2045.

The fourth unit has a capital expenditure budget of approximately $2.45 billion, compared with approximately $2.2 billion for Esperanza. Staubo said the roughly 10% increase reflects inflation in long-lead equipment, steel prices and currency fluctuations.