Golar eyes FLNG growth; mulls sale of FSRU after Snam deals falls through

A further heads of terms was signed with NNPC at the beginning of August, with the companies agreeing an integrated contract for the joint development of specific gas fields towards potential FLNG projects which could see the utilisation of FLNG Hilli following the end of the vessel’s current contract in mid-2026 or one of Golar’s 3.5-mta Mark II LNG carrier-to-FLNG conversions could be used. 

Golar said it is also looking at commercial opportunities outside Nigeria for FLNG Hilli.

The Tor Olav Troim-controlled company said the cost of converting 2004-built, 149,172-m³ Fuji LNG is expected to be around US$2Bn, which it said would give an LNG production cost of around US$570 per tonne. Earlier this year, Golar purchased Fuji from TMS Cardiff Gas for US$78M. The company said financing proposals for between US$1.2Bn and US$1.5Bn on the conversion, which are not contingent on an employment contract, are being discussed.

Finally, Golar is now considering its options after Italian firm Snam missed its deadline for giving the go-ahead for the floating storage and regasification unit (FSRU) conversion of LNG carrier Golar Arctic.

Snam signed a €269M (US$295M) deal last May to convert 2003-built, 140,000-m³ Golar Arctic into a regasification unit to be deployed in the port of Portovesme, Sardinia to help supply the island with energy.

At the earnings call, Golar chief executive Karl Fredrik Staubo said, “This option lapsed in July and we are now reviewing alternatives for it, including long-term charter or asset sale.” 

Snam has, however, taken possession of FSRU Golar Tundra, which arrived in the port of Piombino in March 2023. Snam purchased the vessel from Golar for US$350M last year. 

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