Golar LNG Limited will acquire New Fortress Energy’s (NFE) ownership stake in FLNG Hilli in exchange for for Golar’s remaining 4.1 million shares in NFE and $100 million cash. Golar will also take over roughly $323 million associated debt obligations.
Golar will acquire the 50% interest in Trains 1 and 2 of FLNG Hilli, currently owned by a subsidiary of NFE.
This increases Golar’s portion of cash flow generation from Hilli’s existing contract ending in July 2026. Improved market fundamentals for liquefaction capacity and Hilli’s market leading operational track record supports increased utilization and earnings potential of Hilli upon re-contracting.
From a strategic perspective, the transaction allows to focus solely on own FLNG portfolio that is 100 percent of as well as buy back NFE stock at an attractive valuation.