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In September 2024, Golar LNG signed an EPC agreement with CIMC Raffles worth $1.6 billion. As part of the EPC agreement, Golar has also secured an option for a second MK II FLNG conversion slot at the yard for delivery within 2028.
Under a deal with CIMC Raffles, Black & Veatch will provide its licensed PRICO technology, perform detailed engineering and process design, specify and procure topside equipment, and provide commissioning support for the FLNG topsides and liquefaction process.
The Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG Gimi.
Fuji LNG is the donor vessel for Golar LNG’s third FLNG conversion, and it arrived at the yard early last year.
Golar’s CEO Karl Staubo discussed the conversion progress during the company’s first-quarter earnings call on Wednesday.
He said the FLNG “remains on schedule and budget.”
CIMC Raffles is expected to deliver the unit in the fourth quarter of 2027 and the FLNG is expected to commence operations in Argentina in the first half of 2028.
Total spend to date on the project is approximately $1.2 billion, fully equity funded by Golar, while the total budget for the MK II FLNG conversion is $2.2 billion.
Staubo said that the yard and Golar “have now concluded the mid-ship fabrication, which will house the entire liquefaction plants.”
“We’re very pleased with the development and the quality of the work done at CIMC in Yantai, China. And this gives us comfort to also look to do more units at the same location,” he said.
Argentina
In October 2025, all conditions precedent and customary closing conditions in connection with the 20-year charter of Golar’s 3.5 mtpa MKII FLNG to Southern Energy in Argentina have been satisfied.
This milestone followed the execution of definitive agreements announced in May, and the final investment decision announced on August 6, 2025.
The 20-year charter of the MKII FLNG solidifies $8 billion of net earnings backlog over 20 years, equivalent to $400 million in annual Ebitda to Golar, before commodity exposure and inflationary adjustments.
SESA’s shareholders comprise Pan American Energy (30 percent), YPF (25 percent), Pampa Energia (20 percent), Harbour Energy (15 percent), and Golar LNG.
The MKII FLNG will be deployed in the Gulf of San Matias, offshore Argentina, where it will operate in proximity to the FLNG Hilli.
Staubo noted during the call that the company and its partners are also progressing the infrastructure required to support the operations in Argentina.
He said the primary work currently includes constructing the compressor stations.
“We are trenching both onshore and offshore to facilitate for the pipeline. There are two key pipeline activities. Initially, Hilli will produce from a 19-kilometer connection to the existing gas rigs in Argentina. That construction is well underway and very much on schedule to be in place when Hilli arrives,” he said.
“The second pipeline is a dedicated pipeline that will go all the way from Vaca Muerta down to the Gulf of San Matias, which is north of 500 kilometers,” he said.
“During the quarter, SESA awarded both line pipes, compressor stations, and the EPC to construct that pipeline to also ensure that it’s in place when the Mark II arrives. So far, everything is on schedule and better than originally anticipated on SESA’s budgets,” he said.