Golar LNG has signed an engineering, procurement and construction agreement with Yantai CIMC Raffles Offshore for its fourth floating liquefied natural gas (FLNG) unit, with annual liquefaction capacity of 3.5 million tonnes.
The conversion project has a total budget of approximately $2.45 billion delivered to its prospective site, with a donor vessel already secured.
Delivery from the Chinese shipyard is expected by the end of 2029. Golar LNG said the unit will be the second vessel built to its second-generation design and will share the same specifications as FLNG Esperanza, which is under construction at the same facility.
Black and Veatch will provide its licensed liquefaction technology, detailed engineering and process design, as well as topside equipment procurement and commissioning support. The project will increase Golar LNG's controlled liquefaction capacity by about 40 per cent to more than 12 million tonnes per annum.
Golar LNG is in advanced commercial discussions with prospective customers as it seeks a long-term charter for the unit. Chief Executive Officer Karl Fredrik Staubo said the vessel would offer prospective clients an “attractive gas monetisation solution”.
“With the experience gained from the first…project and the significant synergies of the repeat design, we are confident in delivering this project with greater efficiency, quality and schedule certainty,” said Yantai CIMC Raffles Chief Executive Officer and President Wang Jianzhong.
The agreement extends the companies' existing partnership as construction preparations for the new FLNG unit proceed.