Gas
Golar LNG expands fleet with Grace Dahlia acquisition
Golar LNG has agreed to acquire the Grace Dahlia carrier from NYK Line to convert it into the company's fourth floating LNG unit.
Key points
- Golar LNG bought the 2013-built Grace Dahlia carrier from NYK Line for FLNG conversion.
- The company's shares trade at a price-to-earnings ratio of 28.7x, above peer averages.
- Execution risks include potential cost inflation and shipyard schedule delays.
What happened
Golar LNG has reached an agreement to purchase the 2013-built Grace Dahlia LNG carrier from NYK Line, according to reporting by Simply Wall Street. The vessel is slated for conversion into the company's fourth floating liquefied natural gas (FLNG) unit.
Why it matters
The acquisition comes amid a period of weak recent trading for the company, with its one-month share price return dropping by 10.6% and a seven-day slide of 6.3%. However, the company holds a year-to-date return of 21.3%. According to Simply Wall Street, the stock trades at a price-to-earnings ratio of 28.7x, which sits significantly above the US Oil and Gas industry average of 12.3x and peer averages of 16.1x.
What comes next
Golar LNG plans to order a fourth FLNG unit in 2026, though the expansion depends on access to shipyard capacity, financing, and long-lead items. Analysts note that conversion delays or cost inflation could impact targeted capital expenditure-to-EBITDA economics, while future performance also relies on Argentina-related infrastructure development and charter terms.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
21.9% of electricity in the world came from gas in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
