We exploit monetisation opportunities at each point along the LNG value chain:
- Wellhead and liquefaction of gas from reservoir – operated by Golar with OneLNG, a joint venture between Golar LNG (51%) and Schlumberger (49%)
- LNG transport – operated by Golar
- LNG regasification and power generation – operated by Golar with Golar Power, a 50-50 joint venture between Golar LNG and Stonepeak Infrastructure Partners
OneLNG: accelerated monetisation of stranded gas
In July 2016 we launched OneLNG, a joint venture with Schlumberger to cooperate on the global development of greenfield, brownfield and stranded gas reserves. Schlumberger is the world’s largest oil services provider. The aim of the venture is to simplify the process and accelerate the time it takes to bring proven gas reserves into production.
Our low-cost FLNG solution can offer gas resource owners a faster development at a lower cost, which increases the net present value of their resource. Our solution becomes more compelling to a wider range of resource owners as commodity prices remain low.
Under the JV we will market gas monetisation solutions to resource owners, investors and governments. Golar will contribute the floating LNG assets and technology while Schlumberger will provide upstream development knowledge and resources. By presenting a united one-stop upstream and midstream solution, OneLNG reduces the number of competing interests in what can be a complicated set of negotiations and also increases the number of financing options available. We believe that this will materially improve the likelihood of a project succeeding.
Golar LNG: monetisation at offshore loading
Significant levels of new LNG production capacity will come into operation between now and 2020. Based on current trading patterns and ton-miles, the current order book of conventional LNG carriers together with the current surplus of carriers on the water is unlikely to be sufficient to carry this new production in a timely manner.
We own and operate a fleet of high-quality LNG carriers. Our ten recently delivered vessels all utilise fuel efficient propulsion and low boil-off technology. Our vessels are compatible with most LNG loading and receiving terminals worldwide.
Golar Power: accelerated realisation of downstream infrastructure
In June 2016 we launched Golar Power, a joint venture with Stonepeak Infrastructure Partners, to cooperate in offering integrated LNG-based downstream solutions. Stonepeak is an independent investment firm focused on infrastructure opportunities. The aim of the venture is to accelerate the realisation of our downstream ambitions by bidding FSRUs into selected power projects.
LNG prices are significantly lower than oil prices. We see a range of potential LNG importers that would benefit from a rapid switch to gas.
Our FSRU conversion model allows us to rapidly address projects with bespoke requirements at a competitive price. To date we are the only company to have successfully converted LNG carriers to FSRUs, and we expect our partnership with Stonepeak to position us to exploit our competitive advantage more aggressively.