Golar's Strategic Divestment: A New Chapter for Avenir LNG

Golar LNG Limited has announced a strategic divestment, selling its entire stake in Avenir LNG Limited to Stolt-Nielsen Gas Ltd. for approximately $40 million. The transaction is expected to complete in Q1 2025, subject to conditions. Following the October 2024 spin-off of Higas Srl, Golar will maintain a 25% shareholding and debt provision in the HIGAS LNG storage terminal in Sardinia, which has a total book value of $40.5 million (comprising $24.7m in shareholder loans and $15.8m in shareholders equity).

This strategic move aligns with Golar's long-term objectives, allowing the company to focus on expanding its market-leading FLNG position. By exiting the small-scale LNG shipping market, Golar can eliminate potential operational distractions and reduce exposure to a market segment with different dynamics from FLNG. The transaction value, combined with the retained 25% stake in HIGAS, demonstrates a calculated approach to capital reallocation, enabling Golar to redirect funds towards its core FLNG operations and pursue growth opportunities in this sector.



The divestment also allows Golar to maintain strategic exposure to key infrastructure through HIGAS, preserving optionality in the growing Mediterranean LNG market while freeing up capital for its core FLNG operations. This balanced approach to portfolio management enhances Golar's ability to pursue growth opportunities in its core FLNG business while maintaining beneficial exposure to complementary LNG infrastructure assets.

Golar CEO Karl-Fredrik Staubo commented on the transaction: "The sale of Golar’s shareholding in Avenir LNG is in line with our strategy to focus on expanding our market leading FLNG position. Golar is proud to have founded Avenir LNG into one of the largest small-scale LNG shipping companies globally alongside our partners Stolt Nielsen and Höegh. Following the sale of Hygo Energy Transition Ltd. in 2021, our Avenir LNG investment was no longer deemed a core asset of Golar’s portfolio. We wish the Avenir LNG team and Stolt-Nielsen all the best for the future development of Avenir."

This strategic divestment is a testament to Golar's commitment to pursuing its long-term objectives and optimizing its asset portfolio. By focusing on its core FLNG operations and maintaining strategic exposure to key infrastructure, Golar is well-positioned to capitalize on the growing global demand for floating liquefaction solutions and energy security concerns driving increased natural gas infrastructure investment.