Golar LNG Limited (GLNG): Business Model Canvas [Dec-2025 Updated]

You're digging into Golar LNG Limited (GLNG)'s strategy, and honestly, what you'll find is a masterclass in de-risking an infrastructure play. After two decades analyzing energy plays, I see this as a pure-play Floating Liquefied Natural Gas (FLNG) company that has locked down its future: think three core assets, including the $2.2 billion MKII conversion, all underpinned by a massive $17 billion Adjusted EBITDA backlog. This isn't about chasing spot rates; it's about securing decades of fixed-fee revenue by offering the only independent FLNG-as-a-Service. Let's break down exactly how Golar LNG Limited (GLNG) built this fortress, from its key partnerships with giants like BP to its surprisingly low capex per ton, right here in the full Business Model Canvas below.

Golar LNG Limited (GLNG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Golar LNG Limited relies on to keep those floating liquefaction units earning. It's all about locking in long-term contracts and securing the capital to build the next asset. Here's the breakdown of the key players as of late 2025.

Upstream Gas Producers and Project Partners

Golar LNG Limited's strategy heavily involves partnering with the producers themselves, notably through the Southern Energy S.A. (SESA) consortium in Argentina. This structure is smart because it ties Golar's revenue to the success of the gas extraction.

The SESA consortium, formed to enable LNG exports from Argentina's Vaca Muerta reserves, has a clear ownership structure:

This 10% equity stake in SESA is a key partnership feature, giving Golar LNG Limited commodity exposure. For every $1/MMBtu change in achieved FOB prices above SESA's cash break even, Golar's annual additional Adjusted EBITDA exposure is approximately $28 million.

Also, Golar LNG Limited has a major operational partnership with bp, the operator of the Greater Tortue Ahmeyim (GTA) project offshore Mauritania and Senegal, where FLNG Gimi is deployed.

Major Energy Companies: Long-Term Charter Commitments

The commitment from major energy companies provides the long-term revenue visibility Golar LNG Limited needs to finance its fleet. The FLNG Gimi reached its Commercial Operations Date (COD) in mid-June 2025, which triggered the start of its 20-year Lease and Operate Agreement with bp and its partners.

This single contract unlocked the equivalent of around $3 billion of Adjusted EBITDA backlog for Golar's share. Furthermore, the MKII FLNG secured a 20-year charter with SESA, which solidifies $8 billion of net earnings visibility for Golar over that period, equating to a fixed net charter hire of $400 million per year.

Key financial implications of these long-term charters include:

• FLNG Gimi (bp): Unlocked ~$3 billion Adjusted EBITDA backlog.
• FLNG MKII (SESA): Secures $400 million annual net charter hire.
• Upside: Both Argentina charters include a tariff component of 25% of FOB prices exceeding $8/MMBtu.

Shipyards for Asset Conversion and Growth

The ability to convert existing vessels into high-specification FLNG units is central to Golar LNG Limited's model, relying on specialized shipyards like CIMC Raffles in China for the next-generation units.

The partnership for the MKII FLNG conversion, utilizing the Fuji LNG carrier, involves significant financial commitments:

Also, Golar LNG Limited secured an option for a second MK II FLNG conversion slot at CIMC Raffles for delivery within 2028.

Financial Institutions for Asset-Backed Debt

Securing debt facilities against contracted assets is crucial for funding growth without overleveraging the parent company. Golar LNG Limited recently executed a major refinancing for FLNG Gimi.

The $1.2 billion asset-backed debt facility, closed in late November 2025, involved a consortium of banks, including ABN AMRO, Citibank, DNB, Goldman Sachs, and Standard Chartered Bank. This deal replaced an existing facility with an outstanding balance of $627 million as of Q3 2025.

The new facility's terms are improved:

• Total Facility Size: $1.2 billion.
• Net Liquidity Released (Golar's 70% share): Approximately $400 million.
• Tenor: Seven-year.
• Amortization Profile: 16-year.
• Interest Rate: SOFR plus a margin of 2.50% per annum.

This refinancing proves the bankability of Golar LNG Limited's operational FLNG assets at roughly a ~5.5x debt to EBITDA ratio.

Golar LNG Limited (GLNG) - Canvas Business Model: Key Activities

The core of Golar LNG Limited's business model revolves around the engineering, conversion, and long-term deployment of its Floating Liquefied Natural Gas (FLNG) fleet. This requires significant upfront capital commitment and specialized execution capabilities.

Converting LNG carriers into high-specification FLNG vessels.

Golar LNG Limited's activity includes managing the complex conversion of existing vessels into high-specification FLNG units. The ongoing MKII FLNG conversion is a prime example of this key activity. As of September 30, 2025, Golar LNG Limited had spent $1.0 billion on the MKII FLNG conversion, which has a total budget of $2.2 billion, with all expenditures to date being equity funded. The conversion work is scheduled to complete in the fourth quarter of 2027.

The company is actively evaluating donor vessels for its next unit, inspecting candidates for potential MKI and MKII conversions, alongside developing the larger MKIII design.

Operating and maintaining the FLNG fleet with high uptime.

Maintaining high operational uptime is critical as it directly impacts the fixed-fee revenue streams. The operational performance of the existing fleet underpins the value of securing new long-term charters. The FLNG Hilli had offloaded its 142nd cargo as of the third quarter of 2025, continuing its service before redeployment. For the FLNG Gimi, which reached Commercial Operations Date in June 2025, daily production is now frequently exceeding its base capacity following post-COD equipment tuning.

The operational status and capacity of the current fleet are summarized below:

Securing long-term, fixed-fee charter and liquefaction tolling agreements.

Securing long-term, high-value contracts is the primary driver for Golar LNG Limited's revenue visibility. The company has successfully secured two major 20-year charter agreements with Southern Energy S.A. (SESA) for the FLNG Hilli and the MKII FLNG. These agreements create a substantial contracted backlog.

The contracted revenue visibility is substantial:

• Combined Adjusted EBITDA backlog from existing FLNG fleet: $17 billion (Golar's share) before commodity exposure and inflationary adjustments.
• FLNG Hilli SESA 20-year charter: Net charter hire of $285 million/year, totaling $5.7 billion over the term.
• FLNG MKII SESA 20-year charter: Net charter hire of $400 million/year, totaling $8 billion over the term.

Both agreements also include a commodity-linked upside component, representing 25% of FOB prices in excess of $8/MMBtu. For every US dollar above the $8/MMBtu threshold, the combined annual upside is approximately $100 million when both vessels are operating under these terms.

Developing the next FLNG unit, planning for long-lead equipment orders in Q4 2025.

With the existing fleet fully contracted, Golar LNG Limited is ramping up focus on its next FLNG unit. The company is planning to order long-lead equipment during the fourth quarter of 2025 to safeguard an attractive timeline for this unit. This follows the strategy used for the FLNG Hilli and MKII projects, pursuing the unit before a charter is locked in to drive competitive tension.

The potential designs being considered for the fourth unit include:

• MKI design: Capacity of 2.0 to 2.7 mtpa.
• MKII design: Capacity up to 3.5 mtpa.
• MKIII design: Potential to be the world's largest FLNG at up to 5.4 mtpa.

The company has received updated pricing and delivery terms from three prospective shipyards for these designs. Finance: Finance team to confirm the final capital allocation plan for the Q4 2025 long-lead equipment order by October 31.

Golar LNG Limited (GLNG) - Canvas Business Model: Key Resources

You're looking at the core assets Golar LNG Limited relies on to deliver its FLNG-as-a-service model. These aren't just ships; they are long-term contracted infrastructure generating highly visible cash flows. Here's the breakdown of what Golar LNG Limited is holding as of late 2025.

Proprietary Technology and Operational Proof

• Golar LNG Limited remains the only proven provider of FLNG as a service.
• The operational track record includes the Hilli unit having offloaded its 142nd cargo as of Q3 2025.

The fleet's contracted status is the bedrock of the current valuation story. With all existing units locked into long-term deals, the focus shifts to execution on the next phase of growth.

Core FLNG Assets and Contracted Backlog

The company's key resources are its three operational and near-term operational Floating Liquefied Natural Gas (FLNG) units, all secured on long-term charters:

The MKII FLNG conversion project has a total budget of $2.2 billion, with $1.0 billion spent as of September 30, 2025, all equity funded at that point.

Financial Backlog and Equity Holdings

The contracted revenue visibility is substantial, driven by these assets:

• Total contracted Adjusted EBITDA backlog (Golar's share) is $17 billion before commodity exposure and inflationary adjustments.
• The MKII FLNG charter alone secures $8 billion of that Adjusted EBITDA backlog over its 20-year term, equating to $400 million in annual Adjusted EBITDA to Golar LNG Limited before adjustments.
• Total Golar Cash was $661 million as of Q3 2025, before proceeds from the October 2025 bond offering.
• Golar LNG Limited holds a 10% equity stake in Southern Energy S.A. (SESA).

This SESA ownership, combined with commodity-linked tariffs in the FLNG charters, means Golar LNG Limited has total commodity exposure estimated at approximately $100 million annually for every $1 the achieved FOB price is above the reference price of $8/MMBtu.

Golar LNG Limited (GLNG) - Canvas Business Model: Value Propositions

You're looking at Golar LNG Limited's core offering, and honestly, it boils down to speed, cost, and access to gas that otherwise stays in the ground. They are positioned as the go-to for FLNG as a Service, meaning they own the floating liquefaction infrastructure and lease it out, which is a distinct model from integrated energy companies building their own facilities.

The cost advantage is defintely a major draw. Golar LNG Limited estimates that new FLNG orders come in around $600 per ton in capital expenditure (capex). To put that in perspective, they argue that's roughly half, or even less than half, the cost of building a brand-new, land-based liquefaction plant. This is clearly demonstrated in their current projects.

That faster deployment is key for clients needing to get gas to market quickly. For instance, the conversion of the Fuji LNG into the MKII FLNG is proceeding on schedule, with delivery from the CIMC Raffles shipyard targeted for Q4 2027 after entering the yard in Q1 2025. This timeline helps resource owners start earning sooner.

The service directly addresses the Monetization of Stranded Gas. You see this in action with the FLNG Hilli and the MKII FLNG securing 20-year charter agreements with Southern Energy S.A. (SESA) for LNG exports from Argentina. This unlocks value from offshore or remote fields that might otherwise be uneconomical to develop.

Reliability is not just a promise; it's a track record. The FLNG Hilli 'maintains market leading operational uptime'. Since its contract start-up in Cameroon in 2018, it has achieved 100% economic uptime. As of Q2 2025, the Hilli had offloaded 137 cargoes. Also, the FLNG Gimi, which reached Commercial Operations Date (COD) in mid-June 2025, is now 'frequently exceeding base capacity' during its operational tuning period.

These value propositions translate directly into massive contracted earnings backlog for Golar LNG Limited:

• The FLNG Hilli 20-year redeployment charter adds $5.7 billion in Adjusted EBITDA backlog.
• The MKII FLNG 20-year charter adds $8 billion in Adjusted EBITDA backlog.
• The combined fleet backlog, before commodity upside and inflation, is $17 billion (Golar's share) as of Q3 2025.

Finance: draft 13-week cash view by Friday.

Golar LNG Limited (GLNG) - Canvas Business Model: Customer Relationships

You're looking at how Golar LNG Limited (GLNG) locks in its value proposition with key customers, and honestly, it's all about duration and deep alignment. This isn't about one-off sales; it's about multi-decade partnerships that secure the cash flow you need to fund the next big project.

Long-term, high-value charter contracts (20-year terms are standard).

Golar LNG has successfully converted its entire operational and near-term fleet onto long-term contracts, which is the bedrock of their current stability. For instance, the FLNG Hilli secured a 20-year redeployment charter with Southern Energy S.A. (SESA) in Argentina, which adds $5.7 billion to the Adjusted EBITDA backlog. Furthermore, the under-conversion MKII FLNG also locked in a 20-year charter with SESA, contributing an even larger $8 billion to the backlog. The FLNG Gimi, which reached Commercial Operations Date (COD) in June 2025, is operating under a 20-year lease with BP. These deals alone added $13.7 billion to the Adjusted EBITDA backlog in Q2 2025, bringing the total visibility to approximately $17 billion over the next two decades.

Here's a quick look at the core contract value as of late 2025:

Dedicated operational support and technical expertise for FLNG units.

The relationship extends beyond just the contract signing; Golar LNG provides the necessary technical heavy lifting to keep these floating facilities running. For example, the FLNG Hilli has maintained market-leading uptime since it started service in Cameroon back in 2018. Before its redeployment to Argentina, scheduled to start in Q2 2027, the Hilli will undergo necessary upgrades, winterization, and life extension works, with yard selection expected in Q3 2025. The Gimi, post-COD in June 2025, is actively in an appraisal period where equipment is being tuned for optimization. This hands-on operational management is a key part of the value delivered to the charterers.

The commitment to operational excellence is reflected in the fleet status:

• FLNG Hilli: Completed 137 cargoes offloaded in Cameroon since 2018.
• FLNG Gimi: Reached COD in June 2025, starting its 20-year term.
• MKII FLNG: Conversion work on the $2.2 billion project is proceeding to schedule, with delivery expected in Q4 2027.

Equity co-investment (e.g., 10% SESA stake) to align interests with charterers.

To truly align interests, Golar LNG has taken equity positions in its key customer consortia. The most concrete example is Golar's 10% ownership stake in SESA. This structure means Golar directly benefits when the gas monetized by the chartered FLNGs sells at higher prices. The economics are clear: Golar estimates its total commodity upside potential from both the Hilli and MKII charters is approximately $100 million per year for every $1 increase in FOB prices above the $8/MMBtu reference price. Specifically, the 10% shareholding in SESA alone contributes about $28 million in annual Adjusted EBITDA commodity exposure per $1/MMBtu price change. This structure moves Golar from a pure service provider to a partner invested in the underlying commodity realization.

Finance: draft 13-week cash view by Friday.

Golar LNG Limited (GLNG) - Canvas Business Model: Channels

You're looking at how Golar LNG Limited gets its floating liquefaction (FLNG) assets in front of paying customers and how those assets are maintained or created. This is all about direct, high-value, long-term physical delivery.

Direct negotiation and execution of long-term Lease and Operate Agreements (LOAs)

Golar LNG Limited executes its business primarily through securing extremely long-term, fixed-rate contracts for its specialized fleet. This is the core channel for revenue visibility.

• FLNG Hilli Episeyo secured a 20-year redeployment charter with Southern Energy S.A. (SESA) in Argentina, with operations expected to start in Q2 2027.
• The MKII FLNG has definitive agreements for a 20-year charter with SESA, with contract start-up expected during 2028.
• FLNG Gimi commenced its 20-year Lease and Operate Agreement with BP in June 2025.
• The combined Hilli and MKII agreements secure 40 years of combined charter commitments.

The financial impact of these long-term agreements is substantial, locking in future cash flows:

Overall, Golar LNG Limited's existing FLNG fleet has secured a combined Adjusted EBITDA backlog of approximately $17 billion before accounting for commodity upside and inflationary adjustments as of Q3 2025.

Direct engagement with National Oil Companies (NOCs) and major gas producers

The primary channel for securing these long-term charters is direct engagement with the resource owners who need to monetize stranded gas. In Argentina, this is channeled through a specific entity.

• The key counterparty for the Hilli and MKII charters is Southern Energy S.A. (SESA), which was formed to enable LNG exports from Argentina.
• SESA is owned by a consortium of leading Argentinian gas producers: Pan American Energy holding 30%, YPF at 25%, Pampa Energia at 20%, and Harbour Energy at 15%.
• Golar LNG Limited itself holds a 10% equity stake in SESA, aligning its interests directly with the gas producers.
• The FLNG Gimi operates under a 20-year lease with BP in the Greater Tortue Ahmeyim field.

This structure means Golar LNG Limited is dealing directly with the upstream owners and operators, bypassing many intermediary steps.

Shipyard conversion slots for asset creation (e.g., Seatrium for Hilli redeployment)

To service the long-term contracts, Golar LNG Limited must secure capacity at specialized shipyards for both new builds and major upgrades. This is a critical, capacity-constrained channel.

For the FLNG Hilli redeployment, the channel involves a major upgrade:

• Seatrium in Singapore was selected for the Hilli upgrade scope, which includes life extension and winterization.
• The vessel is scheduled to enter the yard in the third quarter of 2026.
• The scope includes the installation of a new soft-yoke mooring system.

For the MKII FLNG, which is a new conversion, the channel is the shipyard contract:

Golar LNG Limited is actively managing shipyard capacity to ensure its next growth unit can be ordered within 2025, leveraging recycled liquidity from debt optimization on its fully contracted fleet. Finance: draft 13-week cash view by Friday.

Golar LNG Limited (GLNG) - Canvas Business Model: Customer Segments

You're looking at the core clients that drive Golar LNG Limited's revenue, and honestly, it's all about securing those massive, long-term commitments for their Floating Liquefied Natural Gas (FLNG) assets. The customer base is highly specialized, focusing on entities that need flexible, fast-to-deploy liquefaction capacity.

Major integrated energy companies (e.g., BP)

These are the global majors who need reliable, long-term gas monetization solutions, often tied to major offshore field developments. Golar LNG Limited has secured a key contract here. The FLNG Gimi achieved its Commercial Operations Date (COD) in June 2025, officially kicking off its 20-year lease term with BP offshore Mauritania and Senegal. This single asset provides a solid foundation of contracted cash flow.

Consortia of international and national oil and gas producers (e.g., SESA partners)

This segment represents Golar LNG Limited's most significant recent commercial success, centered around the Argentine market. Southern Energy S.A. (SESA), a consortium formed to facilitate Argentina's LNG exports, is now tied to two of Golar LNG Limited's key assets. SESA itself sources gas from producers including PAE, YPF, Pampa, and Harbour Energy PLC. These deals lock in capacity and provide substantial revenue visibility.

Here's the breakdown of the value these two major contracts bring to Golar LNG Limited's backlog:

The combined effect of these two SESA deals, plus the existing Gimi contract, pushes Golar LNG Limited's total Adjusted EBITDA backlog to approximately $17 billion before factoring in commodity upside or inflation adjustments.

Companies seeking to monetize stranded or remote offshore gas reserves

This category describes the fundamental need Golar LNG Limited's technology addresses: unlocking value from gas that is too far from pipelines or too small for traditional liquefaction plants. The SESA project in Argentina's San Matías Gulf is a prime example of monetizing offshore reserves for export. Golar LNG Limited is actively developing its next units, with commercial conversations ongoing for a potential 5th FLNG unit. These potential customers are looking for the capital efficiency Golar offers; Golar estimates new FLNG orders come in around $600 per ton in capex, which is roughly half the cost of building a brand-new land-based plant.

You should note the structure of these deals often includes commodity upside, meaning Golar LNG Limited's customers are often those with significant exposure to the underlying gas price, as Golar estimates an upside potential of approximately $100 million per year for every US dollar of offtake above a reference price of $8/MMBtu on the Hilli and MKII contracts.

Finance: draft 13-week cash view by Friday.

Golar LNG Limited (GLNG) - Canvas Business Model: Cost Structure

You're looking at the hard costs Golar LNG Limited (GLNG) is facing as of late 2025, which is crucial for understanding their cash burn and profitability drivers. It's a mix of massive upfront capital projects and ongoing operational overhead.

Significant Capital Expenditure (CapEx) for FLNG Conversions

The primary capital outlay right now centers on the next-generation vessel.

• The total budget for the MKII FLNG conversion is set at $2.2 billion.
• As of September 30, 2025, Golar LNG Limited had spent $1.0 billion on this conversion.
• This capital expenditure is noted as being all currently equity funded as of that date.
• The conversion work is scheduled to complete in the fourth quarter of 2027.

The EPC (Engineering, Procurement, and Construction) contract price for the MKII conversion itself was $1.6 billion, excluding financing costs. That budget of $2.2 billion is comprehensive, covering the vessel, yard supervision, spares, crew, training, contingencies, and voyage costs to the operational site.

Vessel Operating Expenses (OpEx) and Maintenance Costs for the FLNG Fleet

Operating the existing fleet-FLNG Hilli and FLNG Gimi-incurs significant, recurring costs. These are reported segmented by FLNG operations versus Corporate and other activities. Here are the latest reported figures in thousands of U.S. dollars.

Maintenance costs are baked into the Vessel Operating Expenses, which saw a significant jump in Q3 2025 to ($40,450) thousand for the FLNG segment. This is a key variable cost you need to watch, as increases in salaries, insurance, or necessary repairs directly hit this line item.

Debt Service Costs

Servicing existing and new debt obligations is a fixed, non-discretionary cost. Golar LNG Limited managed its capital structure in October 2025.

• The company issued $500 million in aggregate principal amount of senior unsecured notes due 2030.
• These Notes bear a coupon interest rate of 7.500% per year.
• The annual interest expense on just this new tranche is approximately $37.5 million (7.5% of $500 million).
• The notes were issued at par value on October 2, 2025.
• This issuance followed the repayment of the 2021 Unsecured Bonds, which matured in October 2025.

Following the October 2025 transactions, Golar LNG Limited's share of Contractual Debt increased to $2,338 million. The interest expense component of debt service is a direct drag on earnings before financing costs are considered.

General and Administrative (G&A) Expenses and Corporate Overhead

This covers the cost of running the corporate headquarters and managing the overall fleet, separate from the direct operating costs of the FLNG units.

The run-rate estimate for Corporate G&A costs, as of early 2025, was approximately $400 million per annum. However, the reported quarterly figures show a different picture when legacy shipping activities are consolidated into the Corporate and other segment.

The Q3 2025 Administrative expense was ($7,985) thousand. That quarterly spend translates to an annualized run rate of roughly $31.94 million based on the latest data point, which is significantly lower than the earlier $400 million per annum estimate, suggesting a successful streamlining of corporate overhead following asset sales and segment reorganization.

Finance: draft 13-week cash view by Friday.

Golar LNG Limited (GLNG) - Canvas Business Model: Revenue Streams

You're looking at the cash engine for Golar LNG Limited (GLNG) as of late 2025, and honestly, it's shifted heavily toward long-term, infrastructure-style contracts. The revenue streams are now overwhelmingly anchored by firm, multi-decade charter fees, which is why management feels so confident returning capital to shareholders.

The core of the revenue is the fixed-rate charter hire component, which provides incredible visibility. With the Final Investment Decision (FID) for the MKII FLNG charter to Southern Energy S.A. (SESA) satisfied, Golar has locked in its entire current FLNG fleet on 20-year agreements. This results in a combined Adjusted EBITDA backlog of approximately $17 billion (Golar's share) before any commodity upside or inflationary adjustments.

Here's a quick look at the major components driving that backlog:

• The MKII FLNG charter alone solidifies an Adjusted EBITDA backlog of $8 billion over 20 years.
• This translates to an expected annual Adjusted EBITDA contribution from the MKII of $400 million.
• The FLNG Hilli redeployment to SESA is valued at $285 million in annual Adjusted EBITDA for 20 years.
• The FLNG Gimi contract is expected to contribute approximately $3 billion in net earnings backlog (Golar's 70% share) over its 20-year term.

The actual quarterly performance reflects this operational stability. For the third quarter of 2025, Golar LNG Limited reported an Adjusted EBITDA of $83 million. That's a solid number, showing the Gimi unit is fully contributing after reaching Commercial Operations Date (COD) mid-year.

Beyond the fixed fees, Golar LNG Limited retains significant commodity-linked upside tariffs. This is where the revenue stream gets interesting, as it offers an uncapped participation in higher realized prices. The general exposure is substantial:

• A $1/MMBtu increase in realized FOB prices above the $8/MMBtu reference price adds approximately $100 million in potential annual EBITDA upside to Golar.
• Specifically for the MKII FLNG, the commodity tariff component is estimated to add about $40 million in potential annual upside per $1/MMBtu above $8 FOB.
• The Hilli's commodity tariff component is structured as 25% of FOB prices in excess of $8/MMBtu, which is estimated to add roughly $30 million in potential annual upside per $1/MMBtu above the reference price.

The equity income from the stake in SESA acts as another layer of commodity upside. You defintely need to factor this in for a full picture of the risk/reward profile. Golar's 10% ownership in SESA provides exposure equivalent to approximately $28 million in annual commodity exposure for every $1/MMBtu change in achieved FOB prices relative to SESA's cash break even.

To put the fixed and variable components side-by-side, here is a breakdown of the key contracted revenue drivers as of late 2025:

So, you have the bedrock of $17 billion in backlog value, underpinned by the $400 million annual run-rate from the MKII alone once it starts up, plus the immediate cash flow generation reflected in the $83 million Q3 2025 Adjusted EBITDA.