Golar LNG Limited (GLNG) Stock Analysis

Golar LNG’s principal competitive advantage lies in its first-mover status and operational track record in floating liquefied natural gas (FLNG) solutions. Unlike most peers—such as Shell, ENI, and Petronas, who primarily use FLNGs for their own upstream gas—Golar offers FLNG as a service, enabling third-party gas owners to monetize stranded or remote reserves without ceding resource control. This “liquefaction-as-a-service” model is unique among public companies and has allowed Golar to secure long-term (20-year) contracts with blue-chip counterparties, including BP and Pan American Energy.

Golar’s cost structure is another differentiator. Its capital expenditure per ton of liquefaction capacity is approximately $600 million, materially lower than U.S. land-based projects (often $1 billion/ton) and below most global peers. This cost advantage is reinforced by early access to shipyard slots and proprietary conversion expertise, enabling faster project delivery and lower execution risk.

Operationally, Golar’s FLNG Hilli has delivered over 9.5 million tons of LNG with 100% uptime since 2018, a reliability record unmatched by most rivals. The company’s $17 billion EBITDA backlog, with significant commodity-linked upside, provides visibility and resilience.

Risks include customer concentration and the capital intensity of newbuilds, but Golar’s flexible, asset-light model and proven execution mitigate these threats relative to less specialized competitors.