From well to grid – we have identified, and are exploiting, monetisation opportunities at each point along the LNG value chain. We’re expanding our presence in the parts of the value chain where margins are highest. Our main competitive strength is speed of execution at low cost.

We’re implementing plans to grow our business upstream via OneLNG, our floating liquefaction joint venture with Schlumberger; and downstream via Golar Power, our joint venture with Stonepeak for the ownership and operation of floating storage and regasification units and power generation infrastructure.

Our competitive strengths

Speed of execution

Lead times have historically been a problem for the LNG industry: upstream – the time it takes to bring proven gas reserves into production, and downstream – the time to develop regas plant and associated infrastructure. Our lean organisational structure, coupled with the simplicity of our solutions, speeds up the process. A floating facility takes less time to build than a land-based facility. Reduced lead times mean a quicker return on investment – and therefore a more attractive investment proposition.

Low cost

The costs of producing, liquefying, transporting and regasifying natural gas are much higher than the costs in an equivalent oil supply chain. The high unit cost of supply has, recently, led operators to pursue ever-larger land-based facilities to achieve economies of scale. In many cases, these projects have cost substantially more than anticipated.

Golar has developed more cost-competitive floating liquefaction solutions for projects of varying sizes, as have a few oil majors. Many previously uneconomic pockets of gas – stranded gas – can now be monetised. This will add to reserves and will further underpin the long-term attractiveness of gas. Our FLNG solution, which focuses on the liquefaction of clean, lean, pipeline-quality gas – is one of the cheapest liquefaction alternatives in today’s market. It represents one of the few solutions to have remained economically viable following the recent drop in oil and LNG prices.

Our solutions

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.