Final Investment Decision for MK II 3.5mtpa FLNG

18 Sep 2024 00:43 CEST

Golar LNG Limited (“Golar” or “the Company”) announces today that it has signed
an Engineering, Procurement and Construction (“EPC”) agreement with CIMC Raffles
(“CIMC”) for a MK II Floating LNG Production (“FLNG”) vessel with an annual
liquefaction capacity of 3.5 million tons of LNG per annum (“MTPA”). Under the
agreement with CIMC, Black & Veatch will provide its licensed PRICO® technology,
perform detailed engineering and process design, specify and procure topside
equipment and provide commissioning support for the FLNG topsides and
liquefaction process, similar to Black & Veatch’s role in the construction of
Golar’s existing assets, the FLNG Hilli and FLNG Gimi.

The Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG
Gimi and is also based on the conversion of an existing LNG carrier to an FLNG.
The MK II design allows for a modularization of the construction process as well
as further efficiency and operability advances based on learnings from previous
experience on constructing and operating our existing FLNG assets. The project
will utilize the Golar owned LNG carrier Fuji LNG with a storage capacity of
148,500 m3. The total EPC price is US$ 1.6 billion. The total budget for the MK
II FLNG conversion is US$ 2.2 billion, inclusive of the conversion vessel, yard
supervision, spares, crew, training, contingencies, initial bunker supply and
voyage related costs to deliver the FLNG to its operational site, excluding
financing costs. The MK II FLNG is expected to be delivered in Q4 2027. Out of
the total conversion price, Golar has already spent US$ 0.3 billion to date
inclusive of the conversion candidate, engineering and long lead items which are
now 63% complete.

Yard selection for the MK II FLNG conversion was concluded two years ago. CIMC,
Black & Veatch and Golar have subsequently spent approximately 350,000 man-hours
optimizing the conversion process and de-risking project execution. As part of
the EPC agreement Golar has also secured an option for a second MK II FLNG
conversion slot at CIMC for delivery within 2028.

The 2027 delivery makes the MK II FLNG the earliest available floating
liquefaction capacity globally. Based on potential charter terms in line with
the most recent long term FLNG charter agreements, the MK II FLNG has earnings
potential of approximately US$ 0.5 billion of adjusted annual EBITDA, before
commodity exposure.

Golar CEO, Karl Fredrik Staubo commented: “We are pleased to announce the
ordering of a MK II FLNG, a significant milestone for Golar and our partners
CIMC and Black & Veatch. The ordering of the MK II FLNG strengthens Golar’s
position as the market leading owner of FLNGs, increasing our controlled
liquefaction capacity by about 70% to 8.6 MTPA. With a delivered price of around
USD 600/ton of liquefaction capacity and an attractive Q4 2027 delivery, we
believe today’s FLNG order is well positioned to offer prospective clients an
attractive time-to-market to enable gas monetization, whilst driving value for
Golar. We look forward to working with CIMC and Black & Veatch towards another
successful FLNG delivery and hope to further expand the relationship with
potential additional MK II FLNG units.”

Wang Jianzhong, CEO and President of CIMC Raffles, stated that “The signing of
this new project further solidifies CIMC’s leadership position in offshore
projects. It demonstrates CIMC’s ability to handle large, complex projects that
meet the highest industry standards. CIMC will continue to focus on the
independent development and manufacturing of high-end offshore equipment,
committed to providing high-quality, innovative solutions for the global energy
market.”

Black & Veatch’s Fuels & Natural Resources sector President Laszlo von Lazar
said “We are pleased to be working with CIMC and Golar on the MK II FLNG,
following our support for Golar’s two previous Floating LNG assets. The MK II
represents our 6th floating LNG project to take a final investment decision
utilizing our industry leading PRICO® liquefaction technology. The MK II
demonstrates a clear commitment to reliable, consistent energy through Floating
LNG, to help meet global demands during the energy transition.”


About Golar
Golar LNG is a NASDAQ listed maritime LNG infrastructure company. Through its
75-year history, the Company has pioneered maritime LNG infrastructure including
the world's first Floating LNG liquefaction terminal (FLNG) and Floating Storage
and Regasification Unit (FSRU) projects based on the conversion of existing LNG
carriers. Today Golar is a focused FLNG company, and the only proven provider of
FLNG as a service. Golar owns the world’s largest fleet of FLNG units by annual
liquefaction capacity, with a market leading operational track record.

About CIMC Raffles
Yantai CIMC Raffles Offshore Limited, formerly known as Yantai Shipyard, is a
subsidiary company of CIMC Group. Currently, CIMC Raffles has five Offshore and
Marine Engineering centers located in Yantai, Shenzhen, Shanghai, Norway and
Sweden and three construction bases located in Yantai, Haiyang, and Longkou. The
main business of CIMC Raffles includes the design, construction, repair &
conversion, and leasing of drilling rigs, production units, offshore supply
vessels, ocean farming facilities, offshore wind vessels, etc., aiming to
provide a turn-key solution to clients. CIMC Raffles is always dedicated to
providing innovative equipment and solutions to the sustainable development of
offshore and marine resources through technology innovation and lean management.

About Black & Veatch
Black & Veatch is a 100-percent employee-owned global engineering, procurement,
consulting and construction company with a more than 100-year track record of
innovation in sustainable infrastructure. Since 1915, we have helped our clients
improve the lives of people around the world by addressing the resilience and
reliability of our most important infrastructure assets. Follow us on www.bv.com
and on LinkedIn, Facebook, X (Twitter) and Instagram.
Media Contact Information:
BRUCE ERIC ANDERSON | +1 952-896-0835 | Media@bv.com


FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements (as defined in Section
21E of the Securities Exchange Act of 1934, as amended) which reflects
management’s current expectations, estimates and projections about its
operations. All statements, other than statements of historical facts, that
address activities and events that will, should, could or may occur in the
future are forward-looking statements. Words such as “may,” “could,” “should,”
“would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,”
“estimate,” “predict,” “propose,” “potential,” “continue,” or the negative of
these terms and similar expressions are intended to identify such
forward-looking statements.

These statements are not guarantees of future performance and are subject to
certain risks, uncertainties and other factors, some of which are beyond our
control and are difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such forward-looking
statements. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release. Golar LNG
Limited undertakes no obligation to update publicly any forward-looking
statements whether as a result of new information, future events or otherwise,
unless required by applicable law.


Hamilton, Bermuda
September 17, 2024

Investor Questions: +44 207 063 7900
Karl Fredrik Staubo - CEO
Eduardo Maranhão - CFO
Stuart Buchanan - Head of Investor Relations

This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
Access the news on Oslo Bors NewsWeb site