08:23 AM EDT, 09/18/2024 (MT Newswires) -- Golar LNG (GLNG) said Wednesday that it has signed an engineering, procurement and construction contract worth $1.6 billion with CIMC Raffles.

Under the terms of the contract, the company said an existing Golar-owned liquefied natural gas carrier with a storage capacity of 148,500 cubic meters will be converted to a floating LNG production vessel. Delivery of the floating production vessel is expected in Q4 2027.

The production vessel, which will have an annual liquefaction capacity of 3.5 million tons of LNG, is estimated to have earnings potential of $500 million of adjusted annual EBITDA minus any commodity exposure, the company said.

Under the agreement, Golar's partner Black & Veatch will provide technology, perform detailed engineering and process design, specify and procure topside equipment, and provide commissioning support.

Shares of Golar LNG were up 3.1% in recent premarket activity.

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