Golar LNG initiates strategic review with Goldman Sachs as advisor
Bermuda-based LNG infrastructure company explores alternatives including potential sale after transforming into pure-play FLNG business
Golar LNG Limited has launched a formal strategic review to maximize shareholder value, appointing Goldman Sachs as financial advisor to explore alternatives including a potential sale of the company. The Bermuda-based LNG infrastructure operator, which has a market capitalization of $4.59 billion, announced the review on Wednesday, stating its board would evaluate a range of options from mergers and business combinations to asset divestitures and corporate structure optimization.
The strategic review comes as Golar completes its transformation into a pure-play Floating Liquefied Natural Gas (FLNG) company following a series of divestments over the past year. In February 2025, the company sold its 23.4% stake in Avenir LNG Limited for $39 million, and finalized its exit from the LNG shipping segment by selling the Golar Arctic vessel in March 2025. These moves were part of a broader strategy to focus exclusively on FLNG infrastructure.
Central to Golar's value proposition is its position in Argentina's emerging LNG export market. The company has secured 20-year charter agreements with Southern Energy S.A. (SESA) for two FLNG vessels with combined nameplate capacity of 5.95 million tonnes per annum. The FLNG Hilli Episeyo, with 2.45 MTPA capacity, is expected to generate net charter hire of $285 million annually when operations commence in 2027. The MKII FLNG unit, with 3.5 MTPA capacity currently under conversion at CIMC Raffles shipyard in China, will deliver $400 million in annual net charter hire upon its expected 2028 launch.
Together, these Argentina contracts represent an estimated $13.7 billion in earnings backlog over 20 years, before adjustments for inflation and commodity-linked upside. Golar also holds a 10% equity interest in SESA, which includes major energy producers such as YPF, Pan American Energy, and Pampa Energia. The project has received full government support, including Argentina's first unrestricted 30-year LNG export authorization.
"We believe there is significant potential to unlock value for our shareholders and accelerate our FLNG growth pipeline through this strategic review," the company stated in its announcement, though it emphasized there is no fixed timeline for completion and no guarantee any transaction will occur.
Shares of Golar LNG traded at $53.09 on Wednesday, down 2.6% on the day, giving the company a market valuation of $4.59 billion. The stock has gained 84% over the past year, trading within a 52-week range of $28.87 to $54.90. Analysts remain broadly positive on the company, with consensus ratings of "Strong Buy" comprising seven buy recommendations against one hold. The average analyst price target of approximately $54 sits near current trading levels.
Institutional investors own 87.5% of Golar's shares, according to recent regulatory filings, indicating sophisticated monitoring of potential value-creation opportunities. Top holders include Naria Inc., Rubric Capital Management LP, and BlackRock Inc. Such high institutional ownership often signals that any strategic transaction would likely receive serious consideration from major shareholders.
The strategic review occurs against a backdrop of evolving dynamics in the LNG shipping market. While short-term charter rates faced headwinds in 2025 due to fleet growth outpacing volume expansion, long-term fundamentals remain robust. LNG trade volumes are projected to grow approximately 60% by the end of the decade, with more than 60 million tonnes per annum of planned LNG volumes securing Final Investment Decisions in the second half of 2025 alone. Over 150 mtpa of volumes are currently under construction.
For Golar specifically, the company faces a transition period as its existing Cameroon contract for FLNG Hilli expires in July 2026, before the vessel relocates to Argentina. The Fuji LNG conversion vessel for the MKII FLNG project arrived at the shipyard in February 2025, with delivery anticipated in the fourth quarter of 2027.
Strategic reviews of this nature, particularly when conducted by major investment banks, often precede significant corporate actions. Goldman Sachs' involvement suggests a thorough examination of all alternatives, from selling the entire company to partial asset divestitures or partnerships that could accelerate the FLNG growth pipeline. With its substantial contract backlog and position in Argentina's energy export ambitions, Golar presents an attractive asset profile in a sector where long-term LNG demand remains compelling.
The company noted it would not make further comments regarding the strategic review unless and until its board has approved a specific transaction or otherwise determines disclosure is appropriate.