Golar LNG buys remaining stake in FLNG unit for $90m

Floating liquefied natural gas (FLNG) specialist Golar LNG has acquired minority ownership interests in the 2.4 mtpa FLNG Hilli from Seatrium and Black & Veatch.

The acquisitions comprise all third-party interests in the asset, including 5.45% common units, 10.9% Series A, and 10.9% Series B shares. The transaction is equivalent to around 8% of the full FLNG capacity.

The total consideration for the acquisitions is $90.2m, $59.9m of which is in equity and $30.3m is a pro-rata share in the existing FLNG Hilli debt facility. The transaction will be effective from January 1, 2025, and Golar LNG will be the sole owner of the unit.

The vessel is currently contracted to Perenco in Cameroon. It has so far delivered 124 LNG cargoes and offloaded more than 8.5m tonnes of LNG. It will end its contract with Perenco in July 2026.

The unit is then intended to relocate to Argentina to start a 20-year contract for Southern Energy, a consortium of leading natural gas producers in Argentina. The Southern Energy contract remains subject to an export license, environmental assessment, and final investment decision.

“The increased ownership will give immediate cash flow accretion and is expected to add approximately $500m of adjusted EBITDA backlog,” said Golar CEO Karl-Fredrik Staubo.

Seatrium and Golar also agreed to resolve other remaining issues, resulting in a $7m payment by Golar to Seatrium in relation to a Hilli Train 3 utilisation bonus and settlement of historical work related to former Golar-owned LNGC Golar Gandria.

As a result, there are no outstanding contractual arrangements between Seatrium and Golar related to existing assets.