Golar estimates that the comprehensive budget for the MK II FLNG (floating LNG) conversion will reach $2.2bn. Credit: rafapress/Shutterstock.

Bermuda-based LNG company Golar LNG has entered into a $1.6bn engineering, procurement and construction (EPC) contract with CIMC Raffles.  

The deal involves the transformation of an existing LNG carrier into an FLNG vessel with a capacity of 3.5 million tonnes per annum (mtpa). 

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Under the agreement with CIMC, Black & Veatch will support commissioning for the FLNG topsides and liquefaction process, specify and procure topside equipment, and conduct detailed engineering and process design using its licensed PRICO technology. 

Called MK II, the FLNG vessel represents an evolution of Golar’s existing FLNG designs, incorporating modularisation and efficiency based on prior construction and operational experiences.  

The project will repurpose the Golar-owned Fuji LNG carrier, which boasts a storage capacity of 148,500m³. 

Golar estimates that the comprehensive budget for the MK II FLNG conversion will reach $2.2bn, covering various expenses from the vessel and yard supervision to crew training and initial operations.  

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Golar has already invested $300m in the conversion, with 63% of the required long lead items now complete. 

The anticipated delivery date for the MK II FLNG vessel is set for the fourth quarter of 2027 (Q4 2027).  

In addition to the EPC contract, Golar has secured an option for a second MK II FLNG conversion with CIMC, with a potential delivery in 2028.  

Golar CEO Karl Fredrik Staubo said: “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 8.6mtpa.  

“With a delivered price of around $600/tonne 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 monetisation, whilst driving value for Golar.” 

This EPC contract follows Golar’s recent agreements with Pan American Energy, which include a 20-year FLNG vessel deployment in Argentina and a 10% stake in a joint venture with PAE for LNG operations in the country.