Alexander Bidwell

Alexander Bidwell from Webber Research and Advisory asked about the expected future production levels of the Gimi FLNG above its contractual base, considering factors like ambient temperature, gas composition, and maintenance. He also requested a detailed explanation of the startup and commissioning cadence for the Hilli and Mark II FLNGs in Argentina, including lessons learned from previous deployments in Cameroon and GTA.

Answer

CEO Karl Fredrik Staubo clarified that scheduled maintenance is already factored into Gimi's contractual capacity, anticipating seasonal production variations but consistently above the contracted amount annually. For Argentina, he projected Hilli's commissioning to take 3-4 months and Mark II's up to 6 months. A key lesson from Hilli and Gimi deployments, likely to be applied, is arriving 'cold' with LNG on tanks to expedite commissioning before pipeline gas connection.

Alexander Bidwell asked how Gimi's production above its contractual base should be viewed going forward, considering ambient temperature, gas composition, and maintenance impacts. He also requested a walkthrough of the startup and commissioning cadence for Hilli and Mark II in Argentina, including lessons learned from Cameroon and GTA.

Answer

CEO Karl Fredrik Staubo explained that scheduled maintenance is factored into the 2.4 million tons contractual amount for Gimi. He anticipates seasonality in production (higher in winter, lower in summer but still above 2.4 million tons) and expects to average well above the contracted amount annually, exceeding the 3% seen in Q4. For Argentina, Mr. Staubo expects Hilli's commissioning to take 3-4 months and Mark II's up to 6 months. A key lesson from previous projects, likely to be adopted, is to arrive cold (with LNG on tanks) to initiate commissioning before pipeline gas is fully available, saving significant time.

Alexander Bidwell requested details on the commercial prospects for a fourth FLNG unit, including contract timing and market preference for specific designs. He also asked about the interchangeability of long-lead items across the different Mark I, II, and III FLNG models.

Answer

CEO Karl Fredrik Staubo explained that demand for a fourth unit is strong, with Mark I or II designs being likely for West African projects and a Mark III being considered for South American and Middle Eastern opportunities. He confirmed that key long-lead items, such as gas turbines, are compatible across all three designs, allowing Golar to secure manufacturing slots before finalizing the specific FLNG model.

Alexander Bidwell from Webber Research & Advisory inquired about the commercial offtake strategy for the Argentina projects and whether the contracts include upside for excess production similar to the FLNG Gimi.

Answer

CEO Karl Fredrik Staubo explained that the offtake strategy, led by Southern Energy, will target a mix of Brent, JKM, and TTF-linked contracts with some spot volume. He clarified that unlike Gimi, the Argentina contracts are for full capacity, so Golar captures upside from excess production through its equity stake in Southern Energy rather than through the charter rate.

Alexander Bidwell from Webber Research & Advisory inquired if Golar has started identifying LNG carrier conversion candidates for a potential fourth FLNG unit and asked about the expected timeline for such an acquisition.

Answer

CEO Karl Staubo confirmed that Golar has started the process, including inspecting potential vessels. He noted that given the downward price pressure on suitable LNG carriers in the market, the company does not feel a rush to acquire a vessel but is monitoring the situation closely.

Alexander Bidwell from Webber Research & Advisory asked about the company's plans for the Mark III newbuild FLNG unit and what would drive its selection over a Mark II. He also requested an update on Macaw Energies and the status of a potential separate listing.

Answer

CEO Karl Staubo explained that the Mark III is a larger, more expensive newbuild with a longer construction time, and therefore Golar is unlikely to order one on speculation, preferring to do so only against a firm contract. Regarding Macaw Energies, he confirmed it has sold its first ISO containers but is still being fine-tuned to handle gas quality variability. This has pushed any potential separate listing or business separation into 2025, with interest from industrial partners being an alternative to a public listing.

Alexander Bidwell of Webber Research & Advisory inquired about the impact of recent positive liquefaction project activity on charter market sentiment and whether it has spurred discussions with potential charterers. He also asked for details on potential asset acquisition opportunities.

Answer

CEO Richard Tyrrell confirmed that the positive news flow is encouraging charterers to focus on their long-term shipping needs, although some are currently 'bottom fishing' for low rates. Regarding acquisitions, CFO John Boots and CEO Richard Tyrrell stated that while they are continuously evaluating opportunities and have the financial flexibility, there is nothing concrete to report at this time.

Alexander Bidwell of Stifel Financial Corp. asked about the market appetite for fixed-rate versus floating-rate charters, specifically regarding duration, and inquired about the potential impact of increasing uncontracted LNG volumes from the U.S. Gulf on the carrier market over the next 3 to 5 years.

Answer

Richard Tyrrell, an executive, explained that there is interest in longer-term charters of up to 5 years, particularly for newer vessels, but at rates significantly above current levels, reflecting a market contango. He noted that the imminent wave of new LNG supply will materially impact the market, with the key variable being its destination; shipments to Asia would require far more vessels than shipments to Europe, representing a major potential pivot for LNG shipping demand.

Alexander Bidwell of Webber Research & Advisory asked about the operating expense differences between various LNG technologies and site layouts. He also inquired about the rationale for switching back to ConocoPhillips technology for future expansions.

Answer

EVP & CFO Zach Davis attributed Cheniere's cost efficiency to its large scale and singular focus on its two sites. President & CEO Jack Fusco added that while they benchmark extensively, the decision to pivot back to the larger ConocoPhillips train design was driven by its superior economies of scale for both construction and operations, which better fit the current market for large, long-term contracts.

Alexander Bidwell of Webber Research & Advisory inquired about the impact of increasing merchant LNG volumes on the carrier market and the near-term employment prospects for the company's new multi-gas and LCO2 carriers.

Answer

CFO Nikos Kalapotharakos explained that significant demand for shipping is expected, with a need for around 300 ships versus only 16-17 available through 2029, driven by new projects lacking secured shipping. For the new multi-gas and LCO2 carriers, he noted that the charter fixing window is much shorter than for LNG vessels, and the company expects to have more concrete commercial discussions within the next three to four months.

Alexander Bidwell asked about the impact of increasing merchant LNG volumes on the carrier market and the near-term employment prospects for the new multi-gas and LCO2 carriers.

Answer

CFO Nikos Kalapotharakos explained that a significant demand gap exists, with new LNG projects requiring approximately 300 ships against a very limited available order book. For the new multi-gas and LCO2 carriers, he noted the chartering window is much shorter than for LNG vessels, with firm commercial discussions expected within the next three to four months as the 2026 delivery dates approach.