Golar LNG Unlocks $400M War Chest in Landmark FLNG Refinancing

HAMILTON, Bermuda – November 25, 2025 – In a decisive financial maneuver that signals both a corporate and industry-wide inflection point, Golar LNG has successfully closed a $1.2 billion refinancing for its floating liquefied natural gas (FLNG) vessel, the Gimi. The deal does more than just replace an existing loan; it injects approximately $400 million of fresh liquidity onto Golar’s balance sheet, providing a formidable war chest for growth and cementing the financial viability of complex offshore energy projects.

For investors and analysts watching the energy infrastructure space, this is far more than a routine debt restructuring. It is a powerful validation of Golar's long-term strategy, transforming a high-expenditure construction project into a de-risked, cash-generating asset that has now attracted the backing of a blue-chip banking syndicate including ABN AMRO, Citibank, Goldman Sachs, and Standard Chartered Bank. The move provides a clear look into the C-suite's playbook, demonstrating how savvy financial engineering can unlock significant value from operational assets.

Deconstructing the Deal: More Than Just a Refinancing

The new $1.2 billion asset-backed debt facility replaces a previous financing arrangement that had an outstanding balance of $627 million. The terms of the new deal are a testament to the Gimi's now-proven operational status. With a seven-year tenor and an extended 16-year amortization profile, Golar significantly smooths out its future debt repayment obligations compared to the original 12-year schedule. This longer amortization period immediately enhances free cash flow, a critical metric for a company balancing ambitious growth with shareholder returns.

The interest rate, set at the Secured Overnight Financing Rate (SOFR) plus a 2.50% margin, is considered highly attractive in the current market, reflecting the lenders' confidence in the asset's long-term revenue stream. As CEO Karl Fredrik Staubo noted in the announcement, the deal “proves the bankability of Golar’s FLNG assets once operational on their long-term FLNG contracts.”

This statement is not mere corporate rhetoric. The refinancing was secured at a debt-to-EBITDA ratio of approximately 5.5x, a solid metric that underscores the vessel's strong and, more importantly, predictable cash flow. The transition from a construction loan to a more favorable operational asset-backed facility marks a crucial rite of passage for the Gimi and, by extension, for the entire FLNG sector. It demonstrates that these billion-dollar floating factories are no longer speculative technology plays but mature, bankable infrastructure.

The Gimi: Proving the Floating LNG Model

The confidence from this top-tier banking consortium is anchored in the performance of the asset itself. The FLNG Gimi is now fully operational, moored off the coasts of Mauritania and Senegal as a critical component of BP’s Greater Tortue Ahmeyim (GTA) gas project. Locked into a 20-year lease and operate agreement with the energy supermajor, the vessel provides Golar with a highly visible and stable revenue stream for the next two decades.

Since achieving its Commercial Operations Date in June 2025, the Gimi has not only met but exceeded expectations. After an initial tuning period, the vessel is now consistently operating at 100% of its capacity. This robust performance has directly boosted its financial outlook; while initial guidance pegged the Gimi's annual EBITDA contribution at $151 million based on 90% utilization, its current performance projects a figure closer to $175 million for Golar's 70% stake. This outperformance was undoubtedly a key factor in securing the improved financing terms.

The successful operation and subsequent refinancing of the Gimi serves as a powerful case study. It showcases the lifecycle of a modern energy mega-project: from a capital-intensive, high-risk construction phase to a de-risked, cash-generating operational phase that can be leveraged to unlock further value. For Golar, this milestone vindicates its pioneering role in the FLNG space.

A War Chest for Growth and Shareholder Value

With an additional $400 million in unrestricted cash, the immediate question for the market is: what will Golar’s leadership do with it? The company's recent communications and strategic actions provide a clear answer. Management has established a disciplined, dual-pronged approach to capital allocation: funding accretive growth and delivering robust shareholder returns.

The foremost priority is growth. CEO Karl Fredrik Staubo has been clear that with its existing fleet fully contracted, the company’s focus has shifted to developing its fourth FLNG unit. The capital unlocked from this refinancing is widely expected to be earmarked for just that purpose. This aligns with past company presentations stating that liquidity from debt transactions would be channeled toward “accretive FLNG growth,” a strategy that analysts have lauded as disciplined and forward-looking.

Simultaneously, Golar remains committed to its shareholders. The board recently approved a new $150 million share buyback program, signaling confidence in the stock's value and providing a mechanism to support it during a period of heavy investment in 2026 and 2027. This is complemented by a steady quarterly dividend of $0.25 per share. This balanced strategy allows the company to reinvest in its future while ensuring current investors are rewarded for their patience.

Geopolitics and the New Energy Financing Landscape

This landmark deal cannot be viewed in a vacuum. It reflects a broader shift in the global energy and financial markets. The ongoing geopolitical imperative for energy security, particularly Europe’s urgent need to diversify away from Russian pipeline gas, has placed a strategic premium on flexible LNG infrastructure.

Floating LNG vessels like the Gimi are no longer just an alternative to onshore liquefaction plants; they are a strategic tool. Their mobility and faster deployment times offer nations a way to secure new energy supplies without the multi-year lead times and fixed geopolitical exposure of land-based terminals. This strategic value makes them exceptionally attractive assets for project financiers.

The willingness of a syndicate of the world’s most sophisticated banks to provide $1.2 billion in capital for a single such asset underscores this new reality. In a world defined by energy volatility, predictable cash flows from long-term contracts with credible counterparties like BP, tied to strategically vital infrastructure, represent a safe harbor for capital. Golar's success demonstrates that even in a climate of rising interest rates, there is strong appetite to finance projects that sit at the intersection of technological innovation and geopolitical necessity.