Golar LNG Limited (NASDAQ:GLNG) Q3 2022 Earnings Call Transcript

So therefore, that’s part of what’s driven us to do — place the orders for the Mark II long lead just because we see how close some of these projects are to development or FID. And if we don’t have an FLNG available significantly earlier than if you would then go out and place the order, you have an increased attractiveness of that delivery position.

Greg Lewis: Okay. And then just so I understand this, the $300 million of long lead time items is really specific to the Mark II, where if there was a Mark III design — I guess you could always go down to the Mark I which would probably require less kit. If I needed that Mark III design, any kind of sense for how much those long lead time items would all-in cost?

Karl Fredrik Staubo: The fact of the matter is that most of the equipment we have ordered, it’s interchangeable across our designs, because they are based on the same top side. So what do we have forward, if you are very interested is centrifugal compressors, gas turbines, cold boxes and heat recovery, steam generators, which are the long lead items, longest lead and biggest components of the top side package. So, we are ordering them with a Mark II in mind because that’s where we see the strongest customer pool. But if for whatever reason we had to put that equipment on to Mark I or Mark III, the absolute vast majority of it can be put on either of those two designs. You need to order

Greg Lewis: Okay. Super helpful. Thank you very much.

Karl Fredrik Staubo: More for Mark III, of course, because its bigger liquefaction size.

Greg Lewis: Sure. Okay. Thank you.

Karl Fredrik Staubo : Thank you.

Operator: There are no further questions at this time. So, I’ll hand the call back to you for closing remarks.

Karl Fredrik Staubo: Thank you all for listening into our Q3 results. Have a good day and speak to you all soon. Bye, bye.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.