Golar LNG Limited (GLNG) Stock Analysis

Golar LNG’s principal competitive advantage is its status as the only proven independent provider of floating liquefied natural gas (FLNG) as a service. Unlike peers such as ENI, Petronas, and Shell—who primarily deploy FLNG units for their own upstream gas or integrated portfolios—Golar offers turnkey liquefaction to third-party gas resource owners. This model allows customers to monetize stranded, flared, or remote gas reserves without ceding resource ownership or making large upfront capital commitments.

Golar’s technical edge is demonstrated by its track record: it pioneered the world’s first FLNG conversion (Hilli), has delivered over 140 LNG cargoes with near-perfect uptime, and operates the largest independent FLNG fleet by liquefaction capacity. Its conversion-based approach yields a capital cost of ~$600 million per million tons per annum (mtpa) of capacity—roughly 40% below typical U.S. land-based projects. This cost advantage, combined with shorter lead times, enables Golar to offer competitive tolling rates and rapid project delivery.

The company’s $17 billion contracted EBITDA backlog, underpinned by 20-year, dollar-denominated, English-law-governed charters, provides rare cash flow visibility. Early access to shipyard slots and established supplier relationships further reinforce its position. However, Golar’s concentrated asset base and reliance on a handful of large projects and counterparties represent key risks, especially compared to diversified majors. Nonetheless, its unique service model, cost structure, and operational credibility create a durable moat in a capital-intensive, high-barrier industry.