Golar LNG Limited (NASDAQ: GLNG) has signed an Engineering, Procurement and Construction agreement with Yantai CIMC Raffles Offshore Limited for its fourth floating LNG production vessel, with a total budget of approximately $2.45 billion delivered to its prospective site.

The vessel, a second unit of Golar's MKII design, will have an annual liquefaction capacity of 3.5 million tons per annum and is expected to be delivered from the shipyard by year-end 2029. A donor vessel for the conversion has been secured.

Black & Veatch will provide its licensed PRICO liquefaction technology, perform detailed engineering and process design, and provide commissioning support for the topsides and liquefaction process as part of the EPC agreement.

The new unit mirrors the FLNG Esperanza, currently under construction at CIMC Raffles. Golar said construction of the two units will overlap at the same shipyard, generating design and build synergies.

Golar CEO Karl Fredrik Staubo said the order combines what the company described as the earliest available FLNG delivery globally with its operational track record, and that the unit is intended to provide clients with a gas monetization solution. The company said advanced commercial discussions for a long-term charter contract are in progress.

According to the press release, the addition brings Golar's total controlled liquefaction capacity to above 12 million tons per annum, an increase of approximately 40%.