Bermuda player takes its leave from LNG shipping scene with vessel disposal

Bermuda-headquartered owner and operator of liquefied natural gas (LNG) midstream infrastructure Golar LNG has taken steps to divest a 22-year-old liquefied natural gas (LNG) carrier, bidding farewell to the LNG shipping business segment in the process, as this ship is the last LNG carrier in the Golar fleet.

As the Bermuda-based player has no other LNG carriers in its fleet, the execution of agreements to sell the 2003-built steam turbine LNG carrier, Golar Arctic, for $24 million before transaction-related expenses marks Golar’s exit from the LNG shipping arena after reaching the golden jubilee since its entrance.

Karl Fredrik Staubo, Golar’s CEO, commented: “The sale of the Golar Arctic marks the conclusion of Golar’s planned exit from the LNG shipping segment, 50 years after taking delivery of our first LNG carrier in 1975.

“Over the last 50 years LNG shipping has been the foundation for Golar’s pioneering maritime LNG infrastructure advances, including FSRUs and FLNGs. Golar’s transition into a focused FLNG infrastructure company is now complete. We look forward to expanding our market leading FLNG position.”

The sale of the unencumbered 140,000-cbm Golar Arctic LNG carrier is set to close within Q1 2025, with the vessel handed over to its new owner. Once the vessel sale is out of the way, Golar will have fully exited its legacy shipping business, as the Fuji LNG carrier discharged its final cargo as an LNG carrier in January 2025. This ship has now arrived in China, preparing to enter the CIMC shipyard for conversion into a MKII FLNG later this month.

Last year, Golar LNG also opted to sell a 47-year-old liquefied natural gas carrier, which led Seatrium to lose out on a previously agreed floating LNG (FLNG) conversion assignment.