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 ENI, Petronas, and Shell, which primarily use FLNG units for their own upstream gas, Golar offers third-party resource holders a turnkey solution—design, conversion, operation, and maintenance—without requiring ownership of the gas. This model appeals to governments and companies seeking to monetize stranded or flared gas with minimal upfront capital and execution risk.

Golar’s technical track record is a differentiator. Its Hilli and Gimi units have delivered over 9.8 million tons of LNG with 100% economic uptime since 2018, a reliability metric unmatched by peers. The company’s 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 EBITDA backlog, secured through 20-year, dollar-denominated contracts governed by English law, provides cash flow visibility and reduces counterparty and jurisdictional risk. Golar’s culture emphasizes operational discipline and capital allocation, as evidenced by its exit from shipping and focus on FLNG growth. While new entrants (e.g., Delfin LNG) are emerging, none have demonstrated commercial FLNG operations at scale. Golar’s first-mover advantage, customer-centric model, and proven execution underpin its durable edge.