Seatrium and Golar LNG have signed a letter of intent (LOI) to advance a potential third floating liquefied natural gas (FLNG) conversion project, with a target of finalizing an engineering, procurement and construction (EPC) contract in the second half of 2026.
An FLNG conversion turns an existing LNG carrier into a floating plant that liquefies and stores gas at sea, avoiding the need for an onshore terminal. Under the LOI, Seatrium and Golar will carry out technical design development and project definition work ahead of a possible EPC contract. An upfront payment will cover Seatrium's work under the LOI before that contract is signed.
A third project after Hilli and Gimi
The new project would follow two prior conversions Seatrium delivered for Golar:
- FLNG Hilli Episeyo, 2.4 mtpa capacity, delivered in 2017
- FLNG Gimi, 2.7 mtpa capacity, delivered in 2023
Those two vessels are, to date, the only operational FLNG units converted from LNG carriers anywhere in the world.
What the companies said
Marlin Khiew, executive vice president of Seatrium Energy (Projects), said Golar's decision to return for a third project reflects Seatrium's track record on the earlier two conversions. He said the company wants to apply a 'series-build approach' that improves execution certainty and delivery speed, and lowers cost.
Morten Skjong, Golar's chief technical officer, said the companies have worked together for more than 20 years and that the LOI is a step toward expanding that FLNG collaboration further. He noted that FLNG Hilli is currently heading to Seatrium for vessel upgrades ahead of a 20-year charter in Argentina.
Seatrium said growing demand for LNG and rising interest in flexible gas monetization are behind its position across the LNG value chain, spanning engineering, conversion and EPC work.
