Golar noted in a statement that this milestone follows the execution of definitive agreements announced in May, and the final investment decision announced on August 6, 2025.
The 20-year charter of the MKII FLNG solidifies $8 billion of net earnings backlog over 20 years, equivalent to $400 million in annual Ebitda to Golar, before commodity exposure and inflationary adjustments.
In addition, the charter agreement includes “attractive” commodity exposure both in the FLNG commodity tariff component and through Golar’s 10 percent shareholding in SESA.
SESA’s shareholders comprise Pan American Energy (30 percent), YPF (25 percent), Pampa Energia (20 percent), Harbour Energy (15 percent), and Golar LNG.
The MKII FLNG will be deployed in the Gulf of San Matías, offshore Argentina, where it will operate in proximity to the FLNG Hilli.
Also, the FLNG, with a nameplate capacity of 3.5 mtpa, is currently undergoing conversion at CIMC Raffles Shipyard in Yantai, China.
Golar said the unit is on schedule for delivery by year end 2027, with operations expected to commence in 2028.
The total conversion budget is approximately $2.2 billion of which $1 billion has been spent to date, all capital expenditures funded through equity.
The project has received all key governmental approvals, including an unrestricted 30-year LNG export authorization in Argentina, and qualification as a strategic investment under the large investments incentive regime (RIGI).
FLNG growth
Following today’s confirmation of the 20-year charter for the MKII FLNG in Argentina, each of Golar’s three existing FLNGs now holds 20 years of earnings visibility, representing a combined Ebitda backlog of $17 billion before “attractive” commodity exposure, Golar’s CEO, Karl Fredrik Staubo said.
“Now that our existing fleet is fully contracted for the next 20+ years, we will increase our focus on new FLNG growth opportunities. Golar’s position as the only proven provider of FLNG as a service enables us to drive value for all stakeholders through attractive gas monetization solutions,” he said.
Golar is moving forward with its plans to order its fourth FLNG conversion.
In order to secure “attractive” delivery, Golar said in its results report in August that it plans to enter into slot reservations for long-lead equipment within the third quarter of this year.
