14 days ago
On August 13, Golar LNG (NASDAQ:GLNG) used its second-quarter earnings call to announce a fourth floating LNG unit, an order signed just hours before the call began. The Mark II vessel will be built at CIMC Raffles Shipyard in China and delivered within 2029, making it the earliest available liquefaction capacity anywhere in the world. Combined with an EBITDA backlog of $17 billion already locked in through Hilli, Gimi, and the FLNG Esperanza, the announcement reframes Golar as a company still adding capacity rather than one just running out its existing fleet.
The new order lifts Golar's controlled liquefaction capacity by 41%, from 8.6 million tonnes to more than 12 million tonnes once fully delivered. Management said that if the unit is chartered on terms similar to last year's Esperanza deal, annual earnings capacity could rise 50%, pushing run-rate EBITDA past $1.2 billion by 2030. That confidence rests on a shipyard bottleneck.
Samsung, the industry's biggest builder, isn't expected to have open capacity until 2031, and Wison in China is on track to book its next two large units, leaving it committed well into the next decade. Seatrium and CIMC, the only two yards actively converting FLNG units right now, have built exclusively for Golar. The operating record backs up the growth pitch. Hilli finished its eight-year Cameroon contract with 100% economic uptime and 156 cargoes delivered, Gimi produced 15% above its contracted volume in the quarter, and the Esperanza conversion is 74% complete and still on budget. Commodity-linked income is already showing up in the numbers: Hilli's contribution jumped to $37 million in the quarter from $10 million in the first quarter, helping push EBITDA up 20% sequentially to $127 million.
Growth at this pace isn't free. The CapEx budget for the fourth FLNG unit came in around $2.45 billion, roughly 10% above the $2.2 billion spent on Esperanza, a jump management tied to inflation in long-lead equipment like turbines and dual-fuel engines, parts now being bid up by AI data center and aircraft manufacturers too. That new unit also has no charter yet, so the 50% earnings boost management is pointing to is a target, not a locked-in number.
Meanwhile, Golar is still equity funding Esperanza, having put in $1.3 billion of its $2.2 billion budget, while carrying net interest-bearing debt of about $1.8 billion. Executives are counting on refinancing Hilli and locking in long-term financing for Esperanza to free up roughly $2.3 billion in liquidity, transactions that are still in progress rather than done. The commodity exposure that flatters earnings when LNG prices are high works the same way in reverse. Management's own sensitivity table shows EBITDA falling back toward $1.2 billion if prices settle near $8 per million BTU, well below the $1.9 billion implied by today's $15 forward price. And the disruption at Qatar's Ras Laffan facility, which knocked out an estimated 17 million tonnes of capacity for three
The new order lifts Golar's controlled liquefaction capacity by 41%, from 8.6 million tonnes to more than 12 million tonnes once fully delivered. Management said that if the unit is chartered on terms similar to last year's Esperanza deal, annual earnings capacity could rise 50%, pushing run-rate EBITDA past $1.2 billion by 2030. That confidence rests on a shipyard bottleneck.
Samsung, the industry's biggest builder, isn't expected to have open capacity until 2031, and Wison in China is on track to book its next two large units, leaving it committed well into the next decade. Seatrium and CIMC, the only two yards actively converting FLNG units right now, have built exclusively for Golar. The operating record backs up the growth pitch. Hilli finished its eight-year Cameroon contract with 100% economic uptime and 156 cargoes delivered, Gimi produced 15% above its contracted volume in the quarter, and the Esperanza conversion is 74% complete and still on budget. Commodity-linked income is already showing up in the numbers: Hilli's contribution jumped to $37 million in the quarter from $10 million in the first quarter, helping push EBITDA up 20% sequentially to $127 million.
Growth at this pace isn't free. The CapEx budget for the fourth FLNG unit came in around $2.45 billion, roughly 10% above the $2.2 billion spent on Esperanza, a jump management tied to inflation in long-lead equipment like turbines and dual-fuel engines, parts now being bid up by AI data center and aircraft manufacturers too. That new unit also has no charter yet, so the 50% earnings boost management is pointing to is a target, not a locked-in number.
Meanwhile, Golar is still equity funding Esperanza, having put in $1.3 billion of its $2.2 billion budget, while carrying net interest-bearing debt of about $1.8 billion. Executives are counting on refinancing Hilli and locking in long-term financing for Esperanza to free up roughly $2.3 billion in liquidity, transactions that are still in progress rather than done. The commodity exposure that flatters earnings when LNG prices are high works the same way in reverse. Management's own sensitivity table shows EBITDA falling back toward $1.2 billion if prices settle near $8 per million BTU, well below the $1.9 billion implied by today's $15 forward price. And the disruption at Qatar's Ras Laffan facility, which knocked out an estimated 17 million tonnes of capacity for three
21 days ago
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Secured a firm order for a fourth FLNG unit (Mark II design) with CIMC Raffles, increasing controlled liquefaction capacity by 41% to over 12 million tonnes.
Performance attribution for the quarter was driven by Hilli's 100% economic uptime over its 8-year Cameroon contract and Gimi overproducing 15% against contractual volumes.
Strategic positioning focuses on being the only 'FLNG as a service' provider, capturing demand for supply diversification following geopolitical disruptions in major export hubs like Qatar.
Management attributes the decision to proceed with a Mark II design to strong charter engagement and superior economics regarding CapEx per tonne and OpEx per MMBtu.
#mark #NVIDIA #tell #cimc
Secured a firm order for a fourth FLNG unit (Mark II design) with CIMC Raffles, increasing controlled liquefaction capacity by 41% to over 12 million tonnes.
Performance attribution for the quarter was driven by Hilli's 100% economic uptime over its 8-year Cameroon contract and Gimi overproducing 15% against contractual volumes.
Strategic positioning focuses on being the only 'FLNG as a service' provider, capturing demand for supply diversification following geopolitical disruptions in major export hubs like Qatar.
Management attributes the decision to proceed with a Mark II design to strong charter engagement and superior economics regarding CapEx per tonne and OpEx per MMBtu.
#mark #NVIDIA #tell #cimc
2 months ago
UTM Offshore has signed a gas sales agreement (GSA) with Seplat Energy and the Nigerian National Petroleum Company (NNPC), marking a key development in plans for Nigeria's first indigenous-led floating liquefied natural gas (FLNG) project.
The agreement relates to gas from the deepwater Yoho field offshore Nigeria and moves UTM Offshore's project closer to a final investment decision (FID), according to a press release on African Energy Chamber (AEC).
The FLNG facility is designed to process 176 million cubic feet per day (mcf/d) once operational. Engineering and pre-construction work on the project is already complete.
With the GSA now established, UTM Offshore is progressing towards a sale and purchase agreement and working to achieve an FID. The targeted start date for shipping liquefied natural gas (LNG) from the Yoho FLNG project is 2030, according to current plans.
Financing arrangements are in place for the development, including debt capital from Afreximbank and equity commitments from NNPC and the Delta State Government.
The agreement relates to gas from the deepwater Yoho field offshore Nigeria and moves UTM Offshore's project closer to a final investment decision (FID), according to a press release on African Energy Chamber (AEC).
The FLNG facility is designed to process 176 million cubic feet per day (mcf/d) once operational. Engineering and pre-construction work on the project is already complete.
With the GSA now established, UTM Offshore is progressing towards a sale and purchase agreement and working to achieve an FID. The targeted start date for shipping liquefied natural gas (LNG) from the Yoho FLNG project is 2030, according to current plans.
Financing arrangements are in place for the development, including debt capital from Afreximbank and equity commitments from NNPC and the Delta State Government.
2 months ago
Italian energy major Eni has signed an agreement to acquire a 32% stake in three unconventional gas blocks in Argentina's Vaca Muerta shale formation, strengthening its position in the country's flagship LNG export ambitions.
The sale and purchase agreement covers the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks. The transaction remains subject to regulatory approvals. Once completed, ownership of the ****** ets will be split between YPF (36%), Eni (32%), and XRG (32%).
The upstream ****** ets will supply gas to the Argentina LNG project, an integrated upstream and midstream development designed to monetize Vaca Muerta's vast shale gas resources. The project is expected to support 12 million metric tons per year (mtpa) of LNG export capacity through two floating LNG (FLNG) units, each capable of producing 6 mtpa.
Eni said the investment aligns with its strategy of building integrated gas value chains that combine upstream production with LNG exports and marketing. The company has increasingly focused on FLNG developments globally as demand for flexible LNG supply continues to grow.
"Our entry into Vaca Muerta... strengthens Eni's ability to develop world-scale gas resources and convert them into competitive LNG for international markets," said Guido Brusco, Eni's Chief Operating Officer for Global Natural Resources.
The sale and purchase agreement covers the Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas blocks. The transaction remains subject to regulatory approvals. Once completed, ownership of the ****** ets will be split between YPF (36%), Eni (32%), and XRG (32%).
The upstream ****** ets will supply gas to the Argentina LNG project, an integrated upstream and midstream development designed to monetize Vaca Muerta's vast shale gas resources. The project is expected to support 12 million metric tons per year (mtpa) of LNG export capacity through two floating LNG (FLNG) units, each capable of producing 6 mtpa.
Eni said the investment aligns with its strategy of building integrated gas value chains that combine upstream production with LNG exports and marketing. The company has increasingly focused on FLNG developments globally as demand for flexible LNG supply continues to grow.
"Our entry into Vaca Muerta... strengthens Eni's ability to develop world-scale gas resources and convert them into competitive LNG for international markets," said Guido Brusco, Eni's Chief Operating Officer for Global Natural Resources.
1 yr. ago
Southern Energy FLNG Project in Argentina gets greenlight from Harbour Energy, YPF, Golar LNG https://business-news-toda... #HarbourEnergy #YPF #ArgentinaLNG #SouthernEnergy #FLNG #EnergyInvestment #Argentina
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