Golar LNG Completes Exit from LNG Shipping to Focus on FLNG Sector

 

Golar LNG reports it has executed agreements to see the company’s final LNG carrier, Golar Arctic making the end of of its operations in the segment. Despite strong demand in the LNG carrier segment, the company believes there are stronger opportunities in the FLNG (floating liquefied natural gas) as it redirects all of its focus to that segment.

The sale price for the vessel which was built in 2003, is $24 million before transaction-related expenses and it is unencumbered. Golar Arctic has a capacity of 140,000 cbm and is a stream turbine vessel, a growing rarity in the industry. The vessel reportedly offloaded its last cargo in Taichung, Taiwan over a week ago and its AIS signal shows it is anchored off Malacca City, Malaysia awaiting orders. Golar reports the transaction is expected to close, and the vessel is to be handed over to its new owner, within Q1 2025.

Golar, which started its life at Gotaas Larsen in 1946 was an early entrant into the LNG market after having made investments in other segments including an earlier investor in the cruise ship business. Gotaas Larsen in the 1960s acquired Eastern Steamship Lines, an early cruise pioneer from Miami, and was the third investor joining Wilhelmsen and Skaugen in Royal Caribbean Cruise Lines.

Gotaas-Larsen entered the LNG shipping market, ordering the LNG carrier Hilli in 1970 and became Golar LNG in 2001. It then embarked on its first significant LNG carrier newbuilding program. Efforts to develop its first FLNG began a decade later in 2012 and by 2024 they reported the company was down to just two gas carriers.

 

Fuji LNG arriving in China to begin conversion into an FLNG (Morten Skjong)

 

“The sale of the Golar Arctic marks the conclusion of Golar’s planned exit from the LNG shipping segment, 50 years after taking delivery of our first LNG carrier in 1975. Over the last 50 years LNG shipping has been the foundation for Golar’s pioneering maritime LNG infrastructure advances, including FSRUs and FLNGs,” said Golar CEO Karl Fredrik Staubo.

The company’s other remaining LNG carrier, Fuji LNG (115,000 cbm) was acquired in 2023 with the intent to convert the ship. She discharged her final cargo as an LNG carrier in January 2025. Chief Technical Officer at Golar LNG, Morten Skjong, reports she will be the donor vessel for Golar LNG's third FLNG conversion (the Mk II FLNG). She arrived earlier today at Yantai CIMC Raffles Offshore to start the conversion. They expect she will be available starting in Q4 2027 becoming the company’s fourth FLNG.

“Golar’s transition into a focused FLNG infrastructure company is now complete. We look forward to expanding our market-leading FLNG position,” said Karl Fredrik Staubo.

In January 2025, Golar LNG also reported it had entered into an agreement to sell its shares in Avenir LNG to Stolt-Nielsen Gas for approximately $40 million. Golar along with Stolt Nielsen and Höegh built Avenir LNG into one of the largest small-scale LNG shipping companies. Avenir has a fleet of five LNG bunker/supply ships with two more under construction. The sale was a further part of Golar LNG's refocusing to its FLNG business.

 

Top photo by Kees Torn of Golar Arctic in 2019 - CC BY-SA 2.0