Still in front Golar LNG

STILL IN FRONT

Golar LNG is one of the world’s largest independent owners and operators of LNG carriers with over 30 years of experience in the business. Industry Europe looks at the story of its development and highlights some of its biggest recent contracts.

With decades of experience, Golar LNG is in a strong position at the forefront of the LNG shipping industry. The company developed the world’s first floating storage and regasification unit (FSRU) projects, based on the conversion of existing LNG carriers, and today has four FSRU projects

“Our strategy is to grow our fleet on a profitable basis and build upon our industry leading position as a ‘midstream’ solutions provider,” explains Oistein Dahl, managing director of Golar Wilhelmsen Management and COO of Golar LNG. “We will do this via operational excellence, customer relationships and our experience.

“We are an experienced and professional provider of LNG shipping that places value on operating to the highest industry stand-

ards of safety, reliability and environmental performance and our success is directly linked to the service and value we deliver to our customers. Our customers and partners include some of the biggest participants in the LNG industry.”

He adds: “We are now progressing plans to grow our business further upstream via floating liquefaction (FLNG). Our strategic objective is to become an integrated midstream player in the LNG industry.”

Company background

Golar LNG was formed on May 10, 2001 from its predecessor, Osprey Maritime. Today it focuses on the acquisition, ownership, operation and chartering of LNG carriers and FSRUs through its subsidiaries.

The business was originally founded in 1946 as Gotaas-Larsen Shipping Corporation. Gotaas-Larsen entered the LNG shipping business in 1970, when it ordered the LNG Carrier Hilli, which is still part of the fleet today.

“Gotaas-Larsen was acquired by Osprey Maritime Limited in 1997 and then in May 2001, World Shipholding Ltd, a company indirectly controlled by trusts established by John Fredriksen for the benefit of his immediate family, our chairman and president, completed an acquisition of Osprey – acquiring the LNG shipping interest of Osprey,” says Mr Dahl. “World Shipholding remains our largest shareholder.”

Making the most of opportunities

Golar’s FLNG strategy focuses on the development of low capital cost, rapid deployment floating facilities, utilising the conversion of high quality existing LNG carriers, floating technologies for the liquefaction of pipeline quality gas or associated gas (requiring minimal processing) and other innovative LNG solutions.

“This strategy complements our industry leadership position in floating LNG regasification facilities development,” he says. “In an era of intense competition in the LNG industry and the high cost and long lead time of land based LNG facilities, we believe our highly cost efficient approaches, based on floating LNG liquefaction, storage and off-take, shipping and regasification facilities of the types now being developed by the company, will be key to substantial additional growth opportunities.” Midstream floating solutions

Since 2001, Golar has grown from a fleet of six LNG Carriers purely focused on LNG transportation, to a fleet dedicated to both LNG transportation and midstream floating solutions.

Its strategy to become a midstream floating solution provider began in 2002 when it undertook a study with Saipem/Moss Maritime to consider the conversion of an existing LNG Carrier into a Floating Storage and Regasification Unit (FSRU) and in 2004 a similar study for the conversion into a Floating Power Generation Plant (FPGP).

“In April, 2007, Golar was awarded its first firm FSRU commitments via the award of two long term leases by Petrobras to employ Golar Winter and Golar Spirit as FSRUs.”

New-builds

In 2013 Golar was awarded two new FSRU contracts in Kuwait and Jordan. A shipbuilding project to add new vessels to the fleet is currently underway.

“We have now received the first LNG Carrier. The new-building program consists of totally 13 vessels of which 10 are carriers and 3 are FSRUs. Scheduled for delivery by

January 2015, all 13 160,000 to 170,000 cbm membrane type new-builds will feature the latest energy efficient tri-fuel (gas/diesel/ fuel oil) engines, a 0.1 per cent boil off rate and 19.5 knot design speed,” says Mr Dahl.

In July 2014 Golar announced that it had entered into key agreements for conversion of the 125,000m3 LNG carrier Hilli to a floating liquefaction vessel (FLNGV). The primary contract for the vessel was entered into with Singapore’s Keppel Shipyard Limited.

This contract represents a key step towards the full implementation of Golar’s floating LNG production strategy. It is scheduled to be completed in February 2017. In addition, the company has also secured two firm options for the conversion of two additional vessels which can be delivered from the yard in the third quarter of 2017 and the first quarter of 2018. n