Golar's Strategic Move: Acquiring Full Ownership of FLNG Hilli

Golar LNG Limited, a leading player in the midstream LNG industry, has recently made a strategic move by acquiring all outstanding minority interests in the FLNG Hilli. This acquisition, valued at $90.2 million, grants Golar full economic interest in the asset from January 1, 2025. The transaction is expected to have a significant impact on Golar's operational control, cash flow, and market position in the FLNG sector.

The FLNG Hilli, with a capacity of 1.2 million tons of LNG per year, is currently contracted to Perenco in Cameroon until July 2026. Post-contract expiry, the asset is intended to relocate to Argentina for a 20-year contract with Southern Energy, a consortium of leading natural gas producers. This strategic move positions Golar well in the evolving FLNG market, where the number of floating LNG units is expected to double by 2030.

Golar's acquisition of FLNG Hilli presents potential synergies with its existing FLNG assets, FLNG Gimi and FLNG Gandria. FLNG Hilli's demonstrated operational uptime and capacity (124 LNG cargoes, 8.5 million tons of LNG) can complement Golar's existing assets, enhancing the company's overall production and reliability. Additionally, Golar's strategic focus on FLNG growth, as seen in its MK II FLNG project, aligns with FLNG Hilli's intended relocation to Argentina, potentially creating synergies in operations, maintenance, and supply chain management.

Golar's acquisition of FLNG Hilli is expected to add approximately $0.5 billion of Adjusted EBITDA backlog, further enhancing its competitive edge in the FLNG market. The acquisition also strengthens Golar's market position, as it now owns 100% of the asset, which has demonstrated market-leading operational uptime and has delivered 124 LNG cargoes and offloaded more than 8.5 million tons of LNG since its start-up in 2018.

However, Golar's acquisition of FLNG Hilli also presents potential risks and challenges. The asset's relocation to Argentina post-contract expiry in 2026 is subject to defined conditions precedent, including an export license, environmental assessment, and Southern Energy's Final Investment Decision. Delays or failures in meeting these conditions could impact the project's timeline and profitability. To mitigate these risks, Golar should focus on rigorous maintenance, continuous improvement, and robust risk management strategies.



In conclusion, Golar's acquisition of FLNG Hilli is a strategic move that aligns with its long-term growth strategy and enhances its market position in the FLNG sector. The acquisition is expected to add approximately $0.5 billion of Adjusted EBITDA backlog and strengthen Golar's operational control and cash flow. However, Golar must also address potential risks and challenges associated with the asset's relocation to Argentina. By focusing on rigorous maintenance, continuous improvement, and robust risk management strategies, Golar can mitigate these risks and ensure long-term growth in the FLNG market.