Golar LNG orders 4th FLNG unit from CIMC Raffles with $2.45B budget, earliest 2029 delivery among global FLNG capacity. CEO Staubo flags commercial talks.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Golar LNG placed an order for its fourth floating LNG production vessel, the company said Thursday, locking in a 2029 delivery date that CEO Karl Fredrik Staubo called the earliest available FLNG capacity globally.
The vessel, a second MKII design FLNG with 3.5 million tonnes per annum of liquefaction capacity, carries a total project budget of roughly $2.45 billion delivered to site. Golar signed an engineering, procurement and construction agreement with Yantai CIMC Raffles Offshore, the same yard building the first MKII unit, the FLNG Esperanza. Black & Veatch will supply its licensed PRICO liquefaction technology for the topsides.
The repeat design at the same shipyard produces cost synergies, Staubo said. Having two units under overlapping construction at CIMC Raffles cuts engineering duplication and supplier retooling. Golar has secured a donor vessel for the conversion and made advance commitments for long-lead equipment to hold the yard slot.
The order lifts Golar's controlled liquefaction capacity about 40% to above 12 MTPA, cementing its position as the largest FLNG fleet owner by annual capacity. The company targets a long-term charter contract for the new unit. Advanced commercial discussions are under way, Staubo said in the release.
Wang Jianzhong, CEO and President of CIMC Raffles, said the repeat order while the first MKII is still under construction reflects "strong confidence in our engineering, construction and project execution capabilities." Black & Veatch will handle detailed engineering, process design and commissioning support for the topsides.
Golar shares traded at $38.50 in Thursday afternoon trade, up 2.1% on the session. The company carries an Alpha Score of 45 out of 100, classified as Mixed in the Energy sector. The score reflects its concentrated exposure to a single FLNG project pipeline and the long lead time before the 2029 delivery generates revenue.
The FLNG sector has drawn increased attention as producers seek alternatives to onshore liquefaction plants, which face permitting delays and construction cost overruns. Golar's vessel is scheduled to deliver before any new-build land-based LNG export terminal currently in the US queue, Staubo said.
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