Golar LNG signs EPC deal for MK II FLNG vessel, set for 2027 delivery

Golar LNG has signed an engineering, procurement, and construction (EPC) agreement with CIMC Raffles for the development of a MK II floating LNG production (FLNG) vessel, which will have a liquefaction capacity of 3.5mn tonnes per year, it sai don September 18.

The MK II design builds upon the MK I models of FLNG Hilli and FLNG Gimi and will involve converting the Golar-owned LNG carrier, Fuji LNG, which has a storage capacity of 148,500 m³. The total EPC price is set at $1.6bn, with the overall budget for the conversion estimated at $2.2bn.

Under the agreement, Black & Veatch will provide its PRICO technology, handle detailed engineering and process design, procure topside equipment, and offer commissioning support. The vessel is expected to be delivered in Q4 2027, with Golar having already invested $0.3bn towards the project. Golar has also secured an option for a second MK II FLNG conversion for delivery by 2028. The MK II FLNG has an estimated annual EBITDA potential of $0.5bn.