Golar Lng Ltd (NASDAQ: GLNG)

Golar LNG Limited designs, converts, owns and operates marine infrastructure for the liquefaction of natural gas, and is a leading provider of floating liquefied natural gas (FLNG) as a service. The company converts existing liquefied natural gas carriers into FLNG units that can be deployed to liquefy gas at the source, offering a capital efficient alternative to land based plants. Its core activities include the engineering, construction and commissioning of FLNG vessels, as well as their operation and maintenance under long term service contracts. Golar LNG Limited focuses on monetising stranded, associated, flared or otherwise underutilised gas reserves for resource owners worldwide.

Revenue is generated primarily through long term FLNG service contracts that provide fixed capacity payments, availability based fees and, in many cases, upside linked to benchmark commodity prices such as Brent or TTF. Under these agreements the customer pays for the liquefaction service, while Golar LNG Limited retains ownership of the vessel and bears operational costs unless the contract specifies reimbursement. The company’s revenue streams are further supported by lease type arrangements where the charterer pays a daily rate plus a variable component tied to gas prices. This structure delivers predictable cash flows while allowing participation in market upside.

Golar LNG Limited holds a unique position as the only proven provider of FLNG as a service, with a track record that includes the world’s first converted FLNG and multiple units in operation. While several companies own FLNG assets for their own use, few offer the service model that shifts capital expenditure to the client until cash flow from liquefied natural gas sales begins. This distinction gives Golar a competitive advantage in attracting gas resource owners who seek low risk low up front solutions. The company’s expertise in converting existing carriers results in a capex per ton of liquefaction capacity that is up to 40% lower than typical land based projects, and its mobile assets can be redeployed after a field is depleted, enhancing flexibility. Key competitors in the broader FLNG space include owners such as Golar’s own fleet peers, but none match its pure service offering.

Golar LNG Limited’s customers are primarily international energy companies and regional partners that enter into long term FLNG contracts. Specific counterparties include Perenco and the Société Nationale des Hydrocarbures (SNH) for the FLNG Hilli unit offshore Cameroon, BP and Kosmos Energy for the FLNG Gimi unit serving the Greater Tortue Ahmeyim project offshore Mauritania and Senegal, and the South African energy company SESA for both the recontracted FLNG Hilli and the forthcoming MKII FLNG offshore Argentina. These clients benefit from the service model, which provides them with liquefaction capacity without requiring upfront investment in a floating liquefaction plant.