Golar LNG announces FID for 20-year re-deployment charter

Golar LNG (GLNG) announced the Final Investment Decision and fulfilment of all conditions precedent for the 20-year re-deployment charter of the FLNG Hilli Episeyo, first announced on July 5, 2024. The vessel will be chartered to Southern Energy S.A, offshore Argentina. In addition, Golar and SESA have signed definitive agreements for a 20-year charter for the MKII FLNG, currently under conversion at CIMC Raffles shipyard in Yantai, China. The MKII FLNG charter remains subject to FID and the same regulatory approvals as granted to the FLNG Hilli project, expected within 2025. The two FLNG agreements are expected to add $13.7B in earnings backlog to Golar over 20 years, before adjustments to the charter hire and before commodity linked tariff upside. For every US$ 1/mmbtu above the US$ 8/mmbtu, the total upside for Golar will be approximately $100 million when both FLNGs are in operation. Subject to a three-year notice and payment of a fee, SESA may reduce the term of the agreement to 12 years for the FLNG Hilli and to 15 years for the MKII FLNG.