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Golar LNG Limited (G2O.F)

Frankfurt - Frankfurt Delayed price. Currency in EUR
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23.60+2.20 (+10.28%)
At close: 04:31PM CEST
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  • Ø
    Øivind
  • e
    eli
    Any good leads going into next week?
  • S
    Stephen
    BP earnings

    BP earnings where today and the stock is flying. Did anyone listen to conference call to see if they said anything about the Tortue project phases 2 and 3?
  • S
    Stephen
    Someone downgraded golar today to strong sell. What if golar announces its new flng during next week's earnings
  • S
    Stephen
    This stock is in the most favorable environment,

    But, is it just me or seems like the last 5 or 6 weeks this stock has been performing worst of breed. Oil stocks hitting 52 weeks high. Didn't participate in the big natural gas stocks runup last month.

    There seems to be a lack of news stimulus with GLNG, where are them 2 or 3 new FLNG contracts promised this year?
  • P
    Proud Calgarian
    Long GLNG:
    In recent years, the epicenter of demand for liquefied natural gas (LNG) has been Asia. The world's three largest buyers of liquified natural gas are located there: China, Japan, and South Korea.

    China's imports of LNG alone are expected to increase by 8.0 to 8.5 million tons year-on-year in 2022, accounting for about 45% of Asia's LNG imports growth.

    Apple
    However, the Russian invasion of Ukraine and the resulting soaring prices for LNG have tempered demand there. The energy consultancy Wood Mackenzie expects Asian LNG demand growth to slow to 2% year-on-year in 2022, from an 8% pace in 2021.

    But the war and the reduction of energy exports from Russia has turned Europe into a rather desperate buyer of LNG. Valery Chow of Wood Mackenzie told Reuters "In contrast [to Asia], European LNG demand is expected to spike up by at least 20% in 2022, reflecting reduced Russian pipeline flows and the need to replenish depleted European gas storage levels."

    Prices for both natural gas and electricity have hit all-time highs in Europe, which led the European Union to roll out plans to cut dependency on Russian gas by two-thirds this year, and to end its reliance on Russian supplies of the fuel by the end of the decade.

    Europe's largest economy, Germany, vowed to all but wean itself off Russian gas by mid-2024. And it's easy to see why.

    The latest problem involves Russia now demanding payment for its gas in rubles. So, Germany and Austria have put plans in place to possibly to ration supplies of natural gas if supply is cut off.

    Europe, which relies on Russia for 45% of its gas supplies—155 billion cubic meters—will need LNG from a number of sources, including the United States.

    And indeed, the U.S. is finalizing a plan to supply the EU with up to an additional 15 billion cubic meters (cm) of liquefied natural gas by the end of 2022. This number could rise to 50 billion cubic meters within a few years.

    In 2021, the U.S. supplied Europe with nearly 22 billion cubic meters of LNG according to EU data; so far in 2022, it has shipped 10 billion cm to Europe.

    However, Europe has a weakness...a lack of LNG infrastructure. And therein lies a money-making opportunity for investors.

    Europe and LNG

    Europe does have the infrastructure to regasify 170 billion cubic meters of LNG. However, most spare capacity is on the Iberian peninsula (Spain and Portugal).

    And guess what? There are not enough pipelines from the Iberian Peninsula to move LNG supplies further north into the heart of Europe. To build the pipeline infrastructure will take at least several years—plus, land-based LNG import terminals take at least five years to build and are costly.

    So, what is the solution for Europe?

    It needs to secure certain specialized ships that will offer the quickest way to import LNG supplies.

    Since Russia invaded Ukraine last month, Germany, Italy, France, and the Netherlands have announced plans to secure floating storage and regasification units (FSRUs)—docked LNG tankers with heat exchangers that use seawater to turn the supercool fuel back into gas.

    Even this is not a quick fix for Europe, as FSRUs can still take a year or so to set up.

    The global supply chain crunch threatens further delays.

    Here is the harsh reality: spare vessels are few and far between. Out of a global fleet of about 50 FSRUs, estimates are that only five ships are available; three more could be released from contracts this year.

    However, not all of these FSRUs are suitable for northern Europe because water temperatures below 10C (50F) is too cold for the heat exchange system used on some ships.

    And even if Europeans manage to charter a ship, it will cost a pretty penny. Charter rates for FSRUs have increased by at least 50%, to between $150,000 and $180,000 per day since the outbreak of the war. The consultancy Rystad Energy estimates it now costs from $40 million to $60 million per year to charter an FSRU.

    Why so few FSRUs? Until the sudden recent surge in demand, the FSRU market had suffered from overcapacity. It hadn't made sense to build a new FSRU in a long time. Now more FSRUs will be built, but construction backlogs mean it could take until 2027 to deliver a new ship.

    That translates to a goldmine to the companies that do own some of the 33 FSRUs in service now, as well as assets/infrastructure involved with LNG.

    Golar LNG

    One company involved with FSRUs is Golar LNG (GLNG). It has more than 50 years of experience developing marine LNG infrastructure, including FLNG (floating liquified natural gas) facilities. On its website, the company boasts: "As one of the industry's most innovative developers of floating terminals, Golar has produced more LNG from a floating facility than any other operator."

    Golar already owns a FLNG vessel, FLNG Hilli, that is in operation. A similar vessel (FLNG Gimi) is under construction—it's about 80% completed. And it does own a FSRU vessel, Golar Tundra, as well. Finally, there is the Golar Arct
  • S
    Stephen
    Blowout Earnings or New FLNG Contract

    Which you think will hit first? My pick is the new FLNG contract, i dont think earnings a big deal, the earnings report will bring out details when all these new contracts will land!
  • F
    Francis
    Hilli -More positive news- Three countries agreed on the export of Israeli gas from a liquefaction plant in Cyprus in order to transport its quantities by ships to Europe and from the major LNG terminals in Egypt

    https://www.ot.gr/2022/04/12/english-edition/the-plan-of-israel-cyprus-and-greece-for-lng-exports-to-europe/
  • Ø
    Øivind
    Some more details about the possible liquefaction plant in Cyprus.

    https://cyprus-mail.com/2022/04/24/at-last-a-bankable-lng-project-for-cyprus/
  • a
    aquaman
    I know this company market cap is around the $2.5B range. This company may become a buyout target due to long-term contracts and the global change in policy towards Russia.
  • M
    Marek
    Golar LNG Limited (“Golar”) announces today that it has sold approximately one third of the 18.6 million New Fortress Energy Inc. ("NFE") shares received upon completion of the sale of Hygo Energy Transition to NFE in April 2021.
  • Y
    Yahoo Finance Insights
    Golar LNG is down 5.47% to 21.59
  • S
    Stephen
    Destroyed Monday just like entire energy sector.

    Next week earnings, although i am more interested in what they have to say about new projects.
  • S
    Stephen
    Mark 3

    Are there any other flng being built that are as big as the mark 3. The prelude is the only one I know and it has been a disaster.
  • m
    martin
    Stifel raised NFE price target to $68 this morning.

    GLNG owns over 18M shares
  • Ø
    Øivind
    News yesterday: Hilli could be included in a common FLNG plan for Israel, Cyprus and Greece.
  • a
    aquaman
    Great sale price today! Pick up shares while you can.
  • S
    Stephen
    Everything is firing

    1) NFE stock has doulbed from there low, and GLNG owns a ton of these shares
    2) I am not sure where to look, but i suspect CoolCo has doubled since they went public, and glng owns a ton of these shares
    3) We dont like war, but GLNG set to provide Europe new LNG for many years
    4) LNG prices have soared with no signs of coming down
    5) Set to anounce 2 new flng projects this years

    Probably missed a couple
  • S
    Stephen
    We are on fire.

    Just think if they announced one of the two new flng projects expected this year.
  • S
    Stephen
    The run up has been spectacular. I think any gains from here needs to be growth. I really can't figure out why they haven't announced a new flng. I know they been trying really hard to get one last couple of years. They have great cash flow and with europe needing gas, this becomes puzzlement. Just look at nfe over last month