Golar Acquires Grace Dahlia for Fourth FLNG Conversion

Golar LNG has acquired the 2013-built LNG carrier Grace Dahlia from Japan's NYK Line to convert it into its fourth floating liquefied natural gas (FLNG) unit, according to Hellenic Shipping News. The vessel will be converted at CIMC Raffles' Yantai shipyard in China, alongside the FLNG Esperanza, which is currently under construction.

Acquisition Details

The acquisition of the Grace Dahlia is part of Golar's $2.45 billion expansion programme, as reported by Splash 247. The Grace Dahlia has a capacity of 177,427 cubic metres (cbm), providing 20% more LNG storage capacity compared to the 148,500 cbm Fuji LNG, which is being converted into the FLNG Esperanza, according to Hellenic Shipping News. The larger storage capacity will offer prospective customers increased offloading flexibility while retaining the benefits of a repeat MKII design, as stated by Golar LNG.

Conversion and Delivery Schedule

The conversion of the Grace Dahlia is set for completion in 2029, making it the earliest available new FLNG capacity globally, according to Hellenic Shipping News and Splash 247. The vessel will be converted alongside the FLNG Esperanza at CIMC Raffles' Yantai shipyard in China, as reported by Hellenic Shipping News and Splash 247. This conversion marks the second unit built to the same design as the FLNG Esperanza, which has a liquefaction capacity of 3.5 million tonnes per annum (mtpa).

Technical Specifications

The Grace Dahlia is a Moss-type LNG carrier with four spherical tanks and a capacity of 177,427 cbm. The vessel was built by Kawasaki Heavy Industries (KHI) and delivered to Japan’s NYK Line on September 30, 2013, as noted by Baird Maritime and Splash 247. KHI described the Grace Dahlia as the world’s largest Moss-type LNG carrier at the time of its delivery.

Commercial Implications

The acquisition of the Grace Dahlia underscores Golar's commitment to expanding its FLNG fleet, providing additional capacity to meet growing demand in the LNG market. The vessel's larger storage capacity is expected to enhance operational flexibility and attract potential customers looking for larger offloading capabilities, according to Golar LNG.

What This Means for Operators

The conversion of the Grace Dahlia into Golar's fourth FLNG unit is significant for operators as it offers an earlier availability of new FLNG capacity. This could provide more flexibility and options for securing long-term charters and offloading flexibility, particularly for projects requiring larger LNG storage solutions. Additionally, the repeat design of the MKII unit ensures cost efficiencies and operational reliability, making it an attractive option for customers looking to secure long-term contracts in the LNG market.

Golar's strategic move to acquire and convert the Grace Dahlia highlights the company's proactive approach to capitalising on the growing demand for FLNG solutions. The larger storage capacity and earlier availability of the new unit are expected to position Golar favourably in the competitive LNG market, offering operators a reliable and flexible option for their future projects.