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Golar LNG Orders Fourth FLNG, Boosts Capacity Above 12 MTPA

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Golar LNG (GLNG), a Bermuda-based Nasdaq-listed maritime liquefied natural gas infrastructure company, on Thursday said it has reached an engineering, procurement and construction agreement with Yantai CIMC Raffles Offshore for its fourth Floating LNG production vessel.

The order will increase Golar's controlled liquefaction capacity by about 41% to above 12 MTPA and potentially increase its earnings potential by around 50% if chartered at similar terms to its sister vessel the FLNG Esperanza, the company said.

The vessel, the company's second based on MKII design, will have an annual liquefaction capacity of 3.5 million tons of LNG per annum.

It has a total budget of about $2.45 billion, with delivery from the shipyard to its prospective site expected by the end of 2029, the company said in a statement. Golar intends to have a long-term charter contract for the unit, with advanced commercial discussions in progress.

The unit is expected to be the earliest available FLNG capacity globally, with the EPC agreement also including an option to order an additional FLNG unit, the company said.

In Q2, Golar LNG's revenue from its liquefaction services stood at $55.6 million, which compares with revenue of $56.5 million in the corresponding quarter last year.

Golar said it has 5.1 MTPA of FLNG capacity in operation, 3.5 MTPA under conversion, and another 3.5 MTPA under a new EPC contract, giving it more than 12 MTPA in total and making it the world's largest FLNG capacity owner.

FLNG Gimi, in which Golar has a 70% interest, has offloaded 41 cargoes and is producing ahead of schedule. It has achieved a 15% higher day rate in Q2, and output is expected to exceed contracted volumes annually, the company said.

Meanwhile, conversion of the 3.5 MTPA FLNG Esperanza remains on schedule and within budget, with completion expected in Q4 2027. Upon completion, the FLNG is expected to begin operations in Argentina in H2 2028.

Price: $52.35, Change: $+1.28, Percent Change: +2.51%

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