Golar LNG (GLNG) had provided an update on 05/02/25. I had read the SeekingAlpha summary of the event, and had just noted, the Argentina LNG activity in Vaca Muerta had expressed an interest in FLNG Mark II.
But, the details are better laid out by Golar’s Press release
- FLNG Hilli: Net charter rate of $285M per year for 20 years, plus 25% above $8 FOB tariff-linked commodity component.
- FLNG Mark II: Net charter rate of $400M per year for 20 years, plus 25% above $8 FOB tariff-linked commodity component.
- There is a significant clause regarding asset use. Subject to a three year notice, and payment of a fee, the charter lengths can be adjusted. FLNG Hilli to 12 years, FLNG Mark II to 15 years.
FLNG Hilli has been a productive FLNG asset for Golar for 7 years. The existing charter has a production-related component. One year that component really kicked in, and added to margins. I figure the frequency of the component kicking in will likely be 1 - 2 times per decade. For FLNG Mark II, still not FID, but definitely a positive development.