Bermuda-based Golar LNG Restricted is ready to personal a brand new floating LNG manufacturing (FLNG) vessel.
Golar stated in a information launch it signed an engineering, procurement and building (EPC) settlement with CIMC Raffles for a MK II FLNG vessel with an annual liquefaction capability of three.5 million tons of liquefied pure fuel (LNG) each year (mtpa).
The mission will make the most of the Golar-owned LNG provider Fuji LNG with a storage capability of 5.2 million cubic toes (148,500 cubic meters). The whole EPC value is $ 1.6 billion, whereas the full price range for the MK II FLNG conversion is $ 2.2 billion, inclusive of the conversion vessel, yard supervision, spares, crew, coaching, contingencies, preliminary bunker provide and voyage associated prices to ship the FLNG to its operational website, excluding financing prices, in response to the discharge.
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The MK II FLNG is predicted to be delivered within the fourth quarter of 2027. Out of the full conversion value, Golar stated it has already spent $0.3 billion thus far inclusive of the conversion candidate, engineering and lengthy lead gadgets that at the moment are 63 % full.
Underneath the settlement with CIMC, Black & Veatch will present its licensed PRICO know-how, carry out detailed engineering and course of design, specify and procure topside tools and supply commissioning help for the FLNG topsides and liquefaction course of, just like Black & Veatch’s position within the building of Golar’s current property, the FLNG Hilli and FLNG Gimi, in response to the discharge.
Golar LNG stated that the Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG Gimi and can be primarily based on the conversion of an current LNG provider to an FLNG. “The MK II design permits for a modularization of the development course of in addition to additional effectivity and operability advances primarily based on learnings from earlier expertise on establishing and working our current FLNG property,” the corporate famous.
As a part of the EPC settlement, Golar has additionally secured an possibility for a second MK II FLNG conversion slot at CIMC for supply inside 2028.
The 2027 supply makes the MK II FLNG the earliest accessible floating liquefaction capability globally. Based mostly on potential constitution phrases in keeping with the newest long run FLNG constitution agreements, the MK II FLNG has earnings potential of roughly $0.5 billion of adjusted annual EBITDA, earlier than commodity publicity, Golar famous.
Golar CEO Karl Fredrik Staubo stated, “We’re happy to announce the ordering of a MK II FLNG, a major milestone for Golar and our companions CIMC and Black & Veatch. The ordering of the MK II FLNG strengthens Golar’s place because the market main proprietor of FLNGs, rising our managed liquefaction capability by about 70 % to eight.6 MTPA. With a delivered value of round USD 600/ton of liquefaction capability and a pretty [fourth-quarter] 2027 supply, we consider at present’s FLNG order is nicely positioned to supply potential shoppers a pretty time-to-market to allow fuel monetization, while driving worth for Golar. We look ahead to working with CIMC and Black & Veatch in the direction of one other profitable FLNG supply and hope to additional broaden the connection with potential further MK II FLNG models”.
Wang Jianzhong, CEO and President of CIMC Raffles, stated, “The signing of this new mission additional solidifies CIMC’s management place in offshore tasks. It demonstrates CIMC’s capacity to deal with giant, complicated tasks that meet the very best trade requirements. CIMC will proceed to give attention to the impartial growth and manufacturing of high-end offshore tools, dedicated to offering high-quality, progressive options for the worldwide vitality market”.
Black & Veatch’s Fuels & Pure Sources sector President Laszlo von Lazar stated, “We’re happy to be working with CIMC and Golar on the MK II FLNG, following our help for Golar’s two earlier floating LNG property. The MK II represents our sixth floating LNG mission to take a remaining funding determination using our trade main PRICO® liquefaction know-how. The MK II demonstrates a transparent dedication to dependable, constant vitality by Floating LNG, to assist meet world calls for through the vitality transition”.
Golar LNG is a maritime LNG infrastructure firm, describing itself as the one confirmed supplier of FLNG as a service. Golar owns the world’s largest fleet of FLNG models by annual liquefaction capability, with a market main operational monitor report, it stated.
Yantai CIMC Raffles Offshore Restricted, previously generally known as Yantai Shipyard, is a subsidiary firm of CIMC Group. The primary enterprise of CIMC Raffles consists of the design, building, restore and conversion, and leasing of drilling rigs, manufacturing models, offshore provide vessels, ocean farming services, and offshore wind vessels.
To contact the writer, e mail rocky.teodoro@rigzone.com
