Golar LNG Locks In $13.7B FLNG Backlog with Landmark Argentina Deals
August 14, 2025
Golar LNG Limited cemented its position as one of the most active players in the floating LNG (FLNG) market, announcing Q2 2025 results alongside major long-term contracts that add $13.7 billion to its Adjusted EBITDA backlog. The new deals—both with Argentina’s Southern Energy S.A. (SESA)—cover redeployment of the FLNG Hilli and the company’s under-conversion MKII FLNG, securing 40 years of combined charter commitments.
For the quarter ended June 30, 2025, Golar reported net income attributable to the company of $16 million, Adjusted EBITDA of $49 million, and total cash of $891 million. While earnings were lower year-on-year, revenues rose 17% to $75.7 million, buoyed by the start of operations for the FLNG Gimi. The company declared a Q2 dividend of $0.25 per share, payable September 2, 2025, and repurchased 2.5 million shares during the quarter.
FLNG Hilli Redeployment to Argentina
Golar finalized a 20-year charter for the Hilli with SESA, valued at $285 million per year—a total of $5.7 billion. The deal includes a commodity-linked upside of approximately $30 million per year for every $1/MMBtu above a reference FOB price of $8.
The Hilli, which has maintained market-leading uptime since entering service in Cameroon in 2018, will complete its current contract in July 2026, then undergo upgrades, winterization, and life extension works at a yard to be selected in Q3 2025. Operations in Argentina’s San Matías Gulf are scheduled to begin in Q2 2027.
MKII FLNG: Newbuild Conversion for 2028 Start
In August, SESA reached Final Investment Decision for Golar’s 3.5 MTPA MKII FLNG, now under $2.2 billion conversion in China. The 20-year charter, also worth $400 million per year (total $8 billion), carries a commodity-linked upside of about $40 million per year per $1/MMBtu above $8 FOB.
The MKII will join the Hilli in the San Matías Gulf in 2028, with both units providing a combined 5.95 MTPA of nameplate capacity and benefiting from shared infrastructure and operational synergies.
FLNG Gimi Achieves COD
In June, the FLNG Gimi—70% owned by Golar—began its 20-year lease to BP under a Lease and Operate Agreement. Currently offloading its eighth cargo, the vessel is expected to contribute about $3 billion in net earnings backlog over its contract term.
With fixed charter hire, operating expense pass-throughs, and significant exposure to LNG prices above $8/MMBtu, Golar estimates an annual commodity upside potential of $100 million for every $1 increase in FOB prices. Its 10% stake in SESA further enhances earnings sensitivity to market prices.
With its current fleet committed to long-term contracts, Golar is actively developing its next FLNG unit. The company is in discussions with three shipyards for designs ranging from 2.0 to 5.4 MTPA, and expects to reserve long-lead equipment slots in Q3 2025. Management sees strong industry recognition of FLNG’s advantages over onshore liquefaction and is targeting a fourth unit order—potentially the only uncommitted FLNG capacity available before 2030.
