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Golar LNG announced a Letter of Intent with Singapore‑based Seatrium to explore a third floating liquefied natural gas (FLNG) conversion project. The LOI outlines joint work on technical design and project definition, targeting an Engineering, Procurement and Construction contract by the second half of 2026.
Scope of the agreement
The LOI includes an “upfront consideration” of an undisclosed amount, according to Seatrium. If the parties move forward, the conversion would follow two earlier projects: FLNG Hilli Episeyo in 2017 and FLNG Gimi in 2023, the only operational units worldwide converted from LNG carriers.
Marlin Khiew, Executive Vice President of Seatrium Energy (Projects), said the collaboration aims to improve standardisation through a series‑build approach, promising greater execution certainty, faster market entry and cost effectiveness.
Related vessel upgrades
In addition to the prospective conversion, the 2017‑delivered FLNG Hilli is returning to Seatrium for upgrade work ahead of its 20‑year charter in Argentina. Golar’s Chief Technical Officer, Morten Skjong, noted the upgrades and the LOI as steps to broaden the FLNG partnership.
While the details of the upfront payment remain private, the move signals continued confidence in Seatrium’s ability to handle complex floating gas projects. The partnership could reinforce the niche market for converting existing LNG carriers into production units.
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From a broader perspective, the limited number of FLNG conversions highlights the specialized nature of this technology. Companies that can successfully retrofit carriers may gain a strategic edge as demand for flexible offshore gas solutions grows, especially in regions lacking onshore infrastructure.
Seatrium’s past experience with Hilli Episeyo and Gimi suggests a learning curve that could shorten timelines for the new project. Nonetheless, the timeline to a definitive EPC contract remains contingent on technical and commercial assessments slated for the next two years.
Golar’s statement that its “continued confidence in Seatrium reflects our proven track record in delivering complex floating gas solutions” shows a mutual recognition of past successes and the desire to replicate them at scale. By leveraging the operational knowledge gained from the earlier conversions, both firms anticipate smoother integration of engineering, procurement, and construction phases.
The announcement also appears alongside a related industry note about Yangzijiang Shipbuilding achieving new profit and revenue records, illustrating a broader environment of growth and investment within the maritime sector. Such parallel developments hint at a supportive ecosystem for large‑scale offshore projects, where shipbuilders, operators, and financiers are all experiencing heightened activity.
Coverage of the LOI and the associated vessel upgrades was provided by Seatrade Maritime News, with editor Marcus Hand contributing his expertise. Hand’s background includes two decades of maritime journalism, previous roles at Lloyd’s List and the Singapore Business Times, and ongoing involvement with the Singapore Journal of Maritime Talent and Technology. His insight adds credibility to the reporting, ensuring that industry stakeholders receive a clear picture of the strategic implications.
