Golar LNG has recently concluded a substantial agreement, valued at approximately $2.5 billion, for the development of its fourth floating liquefied natural gas (FLNG) production facility. This strategic move aims to significantly enhance the company's operational capabilities and market presence in the global energy sector.

Golar LNG's Landmark $2.5 Billion FLNG Project

In a significant development for the liquefied natural gas industry, Golar LNG officially signed an engineering, procurement, and construction (EPC) contract with Yantai CIMC Raffles Offshore. This monumental deal, valued at around $2.45 billion, is for the construction of Golar LNG's fourth floating liquefaction natural gas (FLNG) production vessel. The vessel's delivery to its operational site is anticipated by the close of 2029.

This new FLNG unit represents a crucial expansion for Golar LNG, marking it as the second vessel to incorporate the advanced MKII design. Upon completion, it is expected to contribute an annual liquefaction capacity of 3.5 million tonnes (mt) of LNG. The company's proactive efforts throughout the year to secure essential equipment and shipyard slots have been instrumental in adhering to this ambitious delivery schedule. A suitable vessel for conversion into this sophisticated floating LNG facility has already been procured for the project.

The construction of this fourth FLNG unit is slated to occur at the CIMC Raffles shipyard. Notably, this is the same facility where Golar LNG's FLNG Esperanza, another vessel featuring the innovative MKII design, is currently under construction. Golar LNG anticipates significant operational efficiencies and synergies by repeating the design and building both vessels at the same location. This co-location strategy is expected to streamline construction processes and optimize resource utilization.

As part of the comprehensive contract, Black & Veatch will play a pivotal role, leveraging its renowned PRICO liquefaction technology. Their contributions will encompass detailed engineering and process design services. Furthermore, Black & Veatch will be responsible for specifying and procuring topside equipment, as well as providing crucial support during the commissioning phases of the topsides and liquefaction process for the new vessel.

With the integration of this new MKII FLNG vessel, Golar LNG's total controlled liquefaction capacity is projected to surge by approximately 40%, reaching an impressive total of over 12 million tonnes per annum (mtpa). The company is actively pursuing a long-term charter contract for this unit, with advanced commercial negotiations already in progress to secure its future employment.

Karl Fredrik Staubo, CEO of Golar LNG, expressed his satisfaction with the agreement, stating, "We are pleased to announce the ordering of Golar's 4th FLNG unit, and our second MKII FLNG with nameplate liquefaction capacity of 3.5mtpa. We believe this FLNG order, combining the world's earliest available FLNG delivery and Golar's market leading operational track record, is well positioned to provide prospective clients with an attractive gas monetisation solution, whilst driving value for Golar. We look forward to expanding our relationship with partners CIMC Raffles and Black & Veatch towards another successful FLNG project."

Earlier, in March 2026, Golar LNG initiated a formal strategic review to explore various avenues for advancing its FLNG expansion initiatives and maximizing shareholder value, demonstrating a clear long-term growth strategy.

This landmark agreement underscores Golar LNG's commitment to expanding its leadership in the FLNG sector and its dedication to providing innovative solutions for global gas monetization.

This monumental deal highlights Golar LNG's forward-thinking approach to meet the increasing global demand for natural gas. By leveraging advanced technology and strategic partnerships, the company is poised to strengthen its position as a key player in the floating LNG market. The efficiencies gained from standardized designs and co-located construction could set a new benchmark for future FLNG projects, ultimately benefiting global energy security and supply.