What are the key technical specifications of Golar LNG's MKII FLNG design?

The MKII design is a standardized FLNG solution offering approximately 3.5 MTPA of liquefaction capacity. It utilizes a converted LNG carrier hull to reduce both capital expenditure and construction lead time compared to traditional newbuild FLNG vessels.

Why is Golar LNG ordering this FLNG vessel without an announced field assignment?

Securing shipyard slots and progressing engineering early allows Golar to significantly shorten the delivery window for potential clients. With strong global demand for LNG export capacity and tight shipyard availability, having an FLNG unit under construction gives Golar a competitive edge in securing field development contracts.

How does this development affect offshore gas development economics?

Standardized FLNG units substantially reduce the cost and technical risk associated with offshore gas commercialization. This makes remote or smaller deepwater discoveries economically viable by bypassing the need for long subsea export pipelines and onshore liquefaction terminals.

Offshore Energy · August 13, 2026 (23h ago) · 1 min read

Golar LNG accelerates FLNG expansion with new $2.45 billion order

Analysis

AI-assisted analysis · reviewed by Yuri Kan

Golar LNG has committed $2.45 billion to expand its floating liquefaction fleet by ordering its second MKII-design FLNG vessel from China's CIMC Raffles shipyard. This EPC contract marks the company's fourth FLNG project overall, underscoring strong confidence in the economics of modular, conversion-based offshore liquefaction. The move strategically positions Golar to capture rising demand for flexible, rapid-deployment LNG export solutions across stranded offshore gas basins globally.

Key Facts

Golar LNG signed an engineering, procurement, and construction (EPC) contract valued at approximately $2.45 billion with Yantai CIMC Raffles Offshore.
The newbuild represents Golar LNG's fourth floating liquefied natural gas (FLNG) unit and the second utilizing its proprietary MKII design.
The MKII design offers an annual liquefaction capacity of around 3.5 million tonnes per annum (MTPA) based on modern hull conversion technology.
CIMC Raffles will execute the engineering and construction works at its specialized offshore yards in Yantai, China.
The investment decision reflects Golar's commercial strategy of securing yard slots and fabricating hulls speculatively or ahead of final long-term charter agreements.

Background & Context

FLNG technology has evolved from capital-intensive, multi-billion-dollar bespoke mega-projects into cost-efficient, standardized offshore conversion models pioneered by operators like Golar LNG. Following the successful deployment of the Hilli Episeyo in Cameroon and the Gimi FLNG for BP's Greater Tortue Ahmeyim project, Golar advanced its standardized MKII concept to lower unit liquefaction costs. Tight shipyard capacity and surging international demand for fast-track gas commercialization have driven midstream operators to secure fabrication capacity well in advance.

Market Impact

This massive capital commitment reinforces Golar LNG's leadership in the niche midstream FLNG sector and signals continued commercial appetite for flexible offshore liquefaction assets. By committing to yard slots at CIMC Raffles, Golar reduces delivery timelines, offering an attractive solution for upstream operators with stranded gas reserves lacking pipeline infrastructure. The contract also highlights the growing dominance of Chinese shipyards in handling complex offshore gas engineering projects compared to traditional South Korean yards. Upstream developers across West Africa, Latin America, and the Mediterranean will monitor this available capacity closely as a viable route to monetize offshore discoveries.

What to Watch

Key milestones to track include the official delivery schedule from CIMC Raffles, alongside Golar's commercial negotiations to secure a binding long-term charterer or field deployment for the unit. Market observers will also watch Golar's debt financing arrangements and equity syndication strategy to fund the $2.45 billion construction milestones over the project lifecycle.

Why This Matters for Cyprus

While primarily targeting global offshore basins, modular FLNG solutions like Golar's MKII design represent a potential monetization alternative for deepwater gas discoveries across the Eastern Mediterranean, such as stranded fields offshore Cyprus or Israel that face complex geopolitical and pipeline export hurdles.

Frequently Asked Questions

What are the key technical specifications of Golar LNG's MKII FLNG design?: The MKII design is a standardized FLNG solution offering approximately 3.5 MTPA of liquefaction capacity. It utilizes a converted LNG carrier hull to reduce both capital expenditure and construction lead time compared to traditional newbuild FLNG vessels.
Why is Golar LNG ordering this FLNG vessel without an announced field assignment?: Securing shipyard slots and progressing engineering early allows Golar to significantly shorten the delivery window for potential clients. With strong global demand for LNG export capacity and tight shipyard availability, having an FLNG unit under construction gives Golar a competitive edge in securing field development contracts.
How does this development affect offshore gas development economics?: Standardized FLNG units substantially reduce the cost and technical risk associated with offshore gas commercialization. This makes remote or smaller deepwater discoveries economically viable by bypassing the need for long subsea export pipelines and onshore liquefaction terminals.

Read on Offshore Energy