Golar Proposes First Floating LNG Conversion

Norway’s Golar LNG, owned by shipping magnate John Fredriksen, announced this month that it planned to convert up to three of its first generation Moss vessels to floating LNG production units. The firm joins a growing list of companies pursuing FLNG projects. This represents the first time an owner has attempted to convert a vessel for this technically-demanding use. Other FLNG proponents say they have considered and rejected the concept in the past. Golar has already converted several of its existing LNG ships into floating storage and regasification units, employing four of these FSRU conversions in Brazil, Dubai and Indonesia to considerable success. The technical and commercial challenges associated with FLNG are far more daunting, however. If Golar is successful in this effort, and many in the industry doubt it will be, the Norwegian ship owner will have found a way to diversify its business and move further up the value chain. Download here