Thank you, and welcome to Golar LNG's Q4 earnings results presentation. Thank you for taking time to dial in. My name is Karl Fredrik Staubo, CEO of Golar LNG. Before we get into the presentation, please note the forward-looking statements on slide two. I am accompanied today by Eduardo Maranhão, our CFO. Given that this is a Q4 presentation, we would like to start today's presentation by a review of the key events that occurred in 2021, as laid out on slide four. The year started with the announced sale of Golar's two subsidiaries, GMLP and Hygo Energy Transition, to New Fortress Energy in January of last year. The transaction closed in April, realizing $130 million in cash proceeds to Golar, as well as 18.6 million shares in New Fortress Energy, equivalent to an ownership in NFE of 8.9%.
Following the sale of the two subsidiaries in May, June, we then undertook a corporate reorganization, started off with changes to corporate management. I moved from being the CFO of Golar to the CEO of Golar, while Eduardo transitioned from being the CFO of Hygo to the CFO of Golar. Furthermore, we right-sized our shore-based organization to the renewed company structure, reducing run rate G&A by approximately $5 million, of which the effects will be effective into 2022 due to redundancy packages for the majority of 2021. In July, we announced increased capacity utilization of the FLNG Hilli of 1.2 million tons of incremental production effective from January 1 this year. The increased production has a tariff linked to TTF gas prices.
At current TTF prices, this announcement represents increased earnings for Hilli for 2022 of approximately $80 million at no incremental CapEx to Golar. In Q3, we announced a refinancing of $682 million of new and refinancing debt facilities at improved terms from retiring facilities and also extending our debt maturities. Lastly, in December, we announced the formation of Cool Company, a business separation of our eight LNG carriers. We then raised $275 million in external equity for that outfit and $570 million of new bank debt for the shipping fleet. In total, these activities involve the sale of assets and subsidiaries for a total enterprise value of approximately $6.2 billion and a refinancing of around $1 billion of debt.
Together, these activities have simplified Golar, crystallized underlying value of our asset portfolio, and significantly strengthened our balance sheet. Turning to slide five. Golar's new corporate structure consists of our two FLNGs, Hilli, which is in production, Gimi, which is 80% technically complete and scheduled to start its 20-year contract for BP in the second half of 2023. We remain with 2 LNG midstream assets, the Golar Arctic, which is a steam carrier, and Golar Tundra, one of the most modern available FSRUs in the market today. She is currently operating as an LNG carrier. We have furthermore developed three different FLNG designs using the same liquefaction technology and design concept, but with differences in liquefaction and storage capacity to cater for different-sized potential new FLNG projects. As a result of the transactions undertaken during 2021, we have three sizable holdings in publicly listed LNG infrastructure companies.
As explained, we own about 9% of New Fortress Energy, around 31% of Cool Company, and around 24% of Avenir LNG. Combined, these three investments have a total value of around $600 million. On slide six, we have highlighted some of the key balance sheet effects of the actions undertaken in 2021. We now have cash and marketable securities of more than $1.1 billion. We have contractual net debt of approximately half a billion dollars. If you include the total remaining CapEx on the FLNG Gimi, the net debt plus remaining CapEx is just under $1 billion. We expect EBITDA development from our existing FLNGs to quadruple over the next three years.
On the right-hand side, you can see that we have rearranged all of our debt facilities, and we have no material debt maturities until 2025, well after Gimi's expected startup in 2023. Turning to slide seven, we believe we are now uniquely positioned for FLNG growth. We have a proven FLNG design. We have a market-leading operational track record with 100% commercial uptime since Hilli started its contract in 2018. And we have now delivered 5 million tons of LNG, more than any other FLNG globally. To the bottom left, we have a market-leading carbon footprint and a market-leading CapEx per ton of liquefaction. Lastly, the global gas price environment is supportive of upstream investment.
We are very encouraged by the progress made for new FLNG projects with existing and prospective new clients, and we expect to be awarded a new FLNG contract within 2022. Our FLNG technology is competitive down to a tolling fee in the region of $2-$3 per MMBTU. This enables monetization of stranded and associated gas fields. As previously announced, we are exploring alternatives to obtain commodity upside exposure while maintaining a base tariff similar to the structure that we have in place for the FLNG Hilli. In the current commodity and price environment, Hilli is making a tariff in the region of $6-$7 per MMBTU liquefied. I'll now hand over to Eduardo to present our Q4 results.
Thanks, Karl, and good morning, everybody. I'm very pleased to provide an update on our group results for the fourth quarter of 2021. Turning to slide number nine, we see that this quarter has been very busy for us. We recorded total operating revenues of $115 million with an adjusted EBITDA of $94 million, up 21% year-on-year. On the FLNG side, Hilli continues to operate with 100% commercial uptime. Based on encouraging market conditions, we have also managed to hedge 100% of our TTF-linked production for this year's Q2 and Q3 at around $25 per million BTU. Gimi construction is 80% technically complete, and we'll provide further details on that in the next slides. We're also making considerable progress on the commercial front.
As alluded by Karl, a new FLNG contract award is expected in 2022. Moving on to shipping, the announced formation of Cool Company, followed by a successful private placement, was completed in January. Closing of the sale of the eight TFDEs is in process, with expected financial closing within the first quarter of 2022. Cool Company has also secured a debt facility of $570 million, which will be used to refinance six out of the eight vessels. On the corporate front, in order to provide extra financial flexibility to us and to support further FLNG growth, we have entered into a new $250 million bilateral facility with a seven years duration. We have also repaid our existing convertible bonds and have now no major debt maturities until 2025.
The formation of Cool Company also reduces our contractual debt by $833 million and will improve our liquidity by a further $342 million. I will talk more about this in detail in this presentation. Moving on to slide 10, I wanted to talk a bit more about our financial results. We can see that the group had a very solid performance in the fourth quarter. Total operating revenues increased from $107 million in Q3 to $115 million in Q4. This represented an increase of 7% from the previous quarter. Operational performance was really strong and adjusted EBITDA came in at $94 million this quarter, up 27% from the previous quarter and also up 20% from the same quarter in 2020.
Adjusted EBITDA from shipping was $43 million this quarter, an increase of 43% when compared to the previous one. FLNG contributed with $56 million this quarter, also reflecting an important increase of 14% when compared to the previous one. The increase in total operating revenues can be attributed to increased revenues from our operating FLNG, the Hilli, and robust performance from our shipping assets. TCE earnings across our shipping fleet increased to $557,300 per day in Q4. Total operating revenues from our FLNG Hilli, including base tolling fees, were $57 million in Q4, an increase of 4% from the previous quarter. This number was further enhanced when including the realized gains from Brent-linked revenues.
Just to remind you all, this oil-linked component of the Hilli generates additional operating cash flows of approximately $3.1 million for every dollar increase in Brent crude prices above $60 per barrel. As a result of rising prices, $12.9 million realized gain was observed in the fourth quarter, up from the $8.9 realized in Q3. This quarter, we recorded a net income of $7 million. A decline in the NFE share price between the first of October and December 31st resulted in a non-cash mark-to-market loss of $51.6 million on our shareholding of 18.6 million NFE shares. However, this impact was more than offset by realized and unrealized gains on our oil and gas and interest rate derivatives of approximately $55 million.
As a result of the new finances that were put in place in the fourth quarter, which included the issuance of a $300 million Norwegian bond, the refinancing of our FSRU Golar Tundra, and the repayment of the existing $101 million revolving credit facility in November, we ended the year with a total cash position of $360 million. That shows how our financial position continues to strengthen, and I will talk more about that on the next slide with some key balance sheet developments. Moving on to slide 11. We can see that the formation of Cool Company brings great benefits to us. First of all, it will immediately reduce our contractual net debt by $833 million.
Secondly, it brings cash proceeds of $270 million to be received during Q1 2022, while also adding $125 million of marketable securities through our shareholding of Cool Company. As I mentioned before, we have also entered into a new corporate bilateral facility, which allows us to draw up to $250 million until the end of Q2. Once drawn, that will have a seven-year duration with a bullet repayment maturing in 2029. Subject to certain ratios, it will carry a cost ranging from LIBOR plus 450 to 500 basis points.
Considering our existing cash position, net proceeds received from Cool Company, the new $250 million bilateral facility, as well as the existing $200 million revolving credit facility, we now have the right level of financial flexibility to support future growth. Our total cash and market securities position now stands at $1.1 billion, as you can see on the left side of the slide. Based on that, our contractual net debt has also substantially improved. When we account for the new finances that were put in place and also adjusting for the debt associated with the Cool Company vessels, our contractual net debt stands at $523 million.
Going further, if we take into account our pro rata share of the Gimi's remaining CapEx, the contractual net debt attributable to Golar would be around $936 million. I'll now turn the call back over to Karl.
Thank you, Eduardo. Turning to FLNG on slide 13. We are starting to see the effects of higher commodity prices on Hilli earnings. Hilli's adjusted EBITDA increased to $57.57 million for Q4 on the back of an increase in Brent link revenues and billing of $1.9 million of overproduction. We expect Hilli earnings to continue to increase on the back of higher Brent-linked earnings, estimated at $17 million for Q1 2022, and the start-up of the previously discussed TTF-linked production from Q1 this year onwards. The unit continues its strong 100% operational utilization, and as alluded to, have offloaded 68 cargoes since its start-up in 2018. Slide 14 elaborates on the embedded upside in the commodity exposure of Hilli tariff. For the last 12 months, Golar's pro rata share of Hilli's EBITDA was $99 million.
This is expected to grow by around 2.6x for 2022 on the back of these higher Brent-linked earnings, where Golar generates $2.7 million of EBITDA for every $1 Brent is above $60. This will add around $80 million in year-over-year earnings. Furthermore, the start-up of our TTF link production unlocks an additional $80 million of Golar's pro rata Hilli earnings. As Eduardo explained, during the quarter, we hedged Q2 and Q3 TTF gas prices, as the summer months are normally the seasonally soft quarters, and we remain open for Q4 2022 TTF gas exposure. Perenco, the charterer of Hilli, has a one-time three-year option to declare up to 0.4 million tons of increased production from 2023 until end of the contract in July 2026.
The tariff on this volume is based on the same TTF link as the 0.2 million tons of 2022 additional capacity utilization. The option is declarable by the end of July this year, and Perenco is currently undergoing a drilling campaign to prove up more gas reserves with a target to increase the gas flow to Hilli. Even if forward curves suggest a reduction in the TTF price from today's level, Hilli earnings are sustainable due to the offsetting effect of the higher utilization should Perenco declare their option. Turning to slide 15 and a Gimi construction update. The unit is now 80% technically complete, with 16 million man-hours worked to date on the conversion.
The remainder of the build is mainly around construction, installation, and testing of equipment ahead of a 2023 sail away and contract start-up. The contract will unlock an annual EBITDA to Golar of $151 million per year, every year for its 20-year contract. On slide 16, natural gas market fundamentals continue to improve for new upstream and liquefaction projects. COVID-related effects have stalled new gas upstream infrastructure projects, which has led to an anticipated shortage of LNG supply to meet the continued strong increase in LNG demand. These developments, together with weather effects and ongoing escalation of geopolitical landscape of large natural gas exporters, have caused spot and forward gas prices to lift, improving economics for LNG upstream projects and also an increasing desire to diversify gas supply sources.
We will now turn our attention to shipping and focus on Cool Company, which comprise the majority of our shipping portfolio. On slide 18, we provide further granularity of the charter profile of our shipping fleet. The light blue color represents our spot market exposure, where we're fully covered for Q1 this year, but with an increasing exposure to an anticipated strengthening of LNG freight rates from Q2 this quarter and onwards. In slightly darker blue, we have our floating rate charters which fluctuate with quoted spot market rates within a band subject to floor and ceiling rates. The bottom two columns represent our fixed and charter options fixtures that generate an average time charter equivalent of just over $60,000 a day, as you can see from the bottom table.
Despite short-term headwinds for LNG spot rates, term rates continue at healthy levels significantly above our 2021 achieved rates. Hence, we expect Cool Company earnings to significantly increase as the fleet recontracts into higher charter parties. On slide 19, we explain what this could mean in terms of the dividend potential from Cool Company. Cool Company has a clear strategy to distribute quarterly dividends once listed in New York, expected later this year. The dividend potential on average spot rates for 2021 of $91,000 a day would equate to a dividend yield of 15% for 2022 or 24% in 2023 as more of the fleet are exposed to higher recontracting rates as we go further out in time.
On slide 20, the LNG freight market has grown by around 7% cumulative aggregate growth for the last 20 years. This is a trend that is expected to continue on the back of new liquefaction projects coming on stream and increasing transportation distances as most of this new capacity is coming on in the U.S. and the fastest-growing demand is in the Far East. U.S. to Far East consumes about double the vessel demand compared to a U.S.-Europe round trip. Looking at the supply side on slide 21, as previously discussed on our previous earnings calls, new environmental regulations coming into effect from January 1st, 2023 will likely make a large part of the fleet on the water non-economical for international long-haul trade.
In particular, steam-propelled vessels built before 2007 are at the heightened risk of exiting international trade, corresponding to about 30% of the fleet on the water. The order book now standing at over 160 vessels are mainly built against charters to service new liquefaction projects, and only 21 of the hundred and sixty ships on order are currently uncommitted. Hence a market backdrop where we have a demand side growing by about 7% a year, a supply side at the risk of seeing 30% of the fleet on the water be made obsolete by new environmental regulations and low ability to increase the supply side, well into 2025 due to yard capacity restrictions bodes well for a tightening of LNG shipping freight rates.
We believe Cool Company is well-positioned to benefit from this development with an increasing exposure to the stock market spot market. Turning to corporate. Golar was awarded best ESG strategy for North America in 2021 by Capital Finance International. We have a history of being an LNG market entrepreneur at the forefront of some of the key technology advances in the LNG industry, including being the first mover into FSRU and later FLNGs. Repurposing of assets and innovation focused on energy efficiency makes financial sense for Golar and its customer and reduces the environmental footprint of LNG. We're grateful to be recognized by CFI for our long-standing efforts in contributing to strengthening LNG's relative competitiveness in the global energy market. Turning to slide 24.
This is a slide familiar to most of you, as we have shown this in most of our previous quarter results, but it's now updated for the effects of Cool Company transaction on both our earnings and balance sheet. Starting off with Hilli. As discussed, this unit has an embedded upside, which should see a 2.6x increase in the earnings year-over-year on the back of the commodity exposure and the increased production. Golar's share of net debt on Hilli stands at $317 million at the end of Q4. Gimi is currently under construction and as such, does not yet generate earnings. She is expected to start her contract in late 2023 and will add $151 million of Golar's pro rata share of EBITDA.
Q4 debt stands at $287 million, while Golar's share of remaining CapEx stands at approximately $410 million, while about half will be covered by existing debt facility and half by equity. Our two remaining shipping and FSRU assets generated $24 million of EBITDA during 2021, and we expect increasing attraction of the FSRU Tundra for potential FSRU charters that can increase EBITDA generation and earnings visibility from this unit. Net debt on our two assets combined stands at $187 million at quarter end. Lastly, G&A for 2021 came in at -$18 million, and cash and marketable securities of more than $1.1 billion. In sum, we expect earnings to quadruple within 2024 from 2021 levels.
Total net debt, including remaining CapEx, stands at less than $1 billion or about 2x fully invested run rate EBITDA. With our current cash position and contract profile, we can fund new FLNG projects whilst starting a dividend following Gimi contract startup. To round off on slide 25. Through 2021, the group simplification is now executed. We expect a quadrupling of our FLNG earnings from our existing assets from 2024 versus 2021 levels. We have a strong balance sheet position with cash and marketable securities of $1.1 billion and fully delivered net interest bearing debt of less than 2x. We believe we're uniquely positioned for FLNG growth, and we are confident that we will see a contract award within 2022. That concludes our Q4 2021 earnings presentation.
Thank you all again for dialing into the call, and we'd like to turn over to the operator for any questions.
Ladies and gentlemen, we now begin the question and answer session. If you wish to ask a question, please press star one on your telephone. The first question is from Randy Giveans from Jefferies. Please go ahead. Your line is open.
Howdy, gentlemen. How's it going?
Hey, Randy.
Hey, Randy.
Okay. Congrats on the Cool Company spin. That was a long time coming, I know. Nicely done there. I guess starting with FLNG, you keep mentioning kind of a possible project in 2022. I guess what gives you that confidence? Can you provide a little more details around that? Maybe timing and hurdles. Staying on FLNG, any updates on the Hilli expansion? I know it's kind of the same language you used a few months ago, but just seeing how likely is that additional option, what's Perenco doing? Any other color you can provide there, that'd be great.
Randy. When it comes to FLNG projects, again, most FLNG projects are large infrastructure projects that obviously require a gas resource and an FLNG, but they also require governmental approvals, environmental approvals, and several fairly lengthy processes that often is outside of our and sometimes outside of our charter's control. Even if both us and the prospective charter is ready to engage, there are still hurdles that we need to cross on timelines that we are less in control of. However, I'll say that we are extremely confident by the progress made through 2021, but also in particular this quarter, both with existing but also new prospective clients. For some of the clients, we have a target timeline that should boast new or contract awards very well within this year.
That is basically what gives us the confidence to say that we will get the award within 2022. To turn to the second part of your question, when it comes to Hilli, at this gas price, I think it's pretty much a no-brainer to increase production. The unit is there, she's available to produce more, and economics of upstream are pretty amazing at current gas prices. So I think the only hold up, if any, is the results of the drilling campaign. Again, the option is the carrier build up until July. And we expect a decision to be made close to the end of that option window.
Got it. Yep. I agree. That's all fair. I guess second question, just looking at some of your other assets. You have the Golar Arctic, you know, kind of what's the status there? The Golar Tundra. It seems like there's some opportunity for an FSRU at the Barcarena project. Can you shed some light on those two assets?
I think Arctic is our last shipping asset. She's a steamer, which we again think will be highly disadvantaged from January 1st, 2023 due to the new regulations. We're looking at basically three alternatives for her, an outright sale, a charter as a ship, or a potential conversion to an FSRU. We believe we will conclude on one of those three well within this year. We are in different processes on all three of those alternatives. When it comes to Tundra, she's one of the most modern FSRUs available in the market today.
I think as the latest geopolitical events have alluded to, it could be an advantage to have a diversified source of natural gas, and we think our relative attractiveness has increased both for main projects like you referred to in Brazil, but also for other projects elsewhere.
Got it. All right. Well, hey, that's it for me. Congrats again. Thank you.
Thanks.
Thank you for your question. The next question from Ken Hoexter from Bank of America. Please go ahead.
Hey, great. Good morning. Karl, you mentioned three different potential FLNG styles, I guess. Is this going back to your Mark III? Is there, I guess, a new development in kind of maybe a midsize versus the large and small you've been talking about? Maybe just talk about you know, it seems like you're progressing on sales. Maybe talk about the optionality there or the differentiation.
I think Mark I is basically what we have for Hilli and Gimi. It's ±2.5 million tons of liquefaction capacity, and it's based on the conversion of an existing ship. Mark II is a slightly more flexible solution that can range between 2-3 million tons. It's also based to a large extent on a conversion, but it's got shorter construction time and can be built at shipyards that provide attractive financing. Lastly, you have the Mark III, which is a new build design, which would typically be built in a shipyard in Korea, and that can go up to 5 million tons. It's for larger projects, and it's also got significantly larger storage capacity.
Does the sale-
Think of it as small, mid, large.
Then does the sale of CoolCo, which kind of was like the embedded base of potential vessels that you could use for some of the conversion opportunities, I guess that doesn't really make an impact given you mentioned how many are gonna be coming off of international trade going forward. Is that where you would look for some of the opportunities for conversion potential, or is this more developing Mark III projects going forward?
I think for conversion, we will focus on Moss-type LNG carriers. All of the ships that went into Cool Company are membrane type and not suited for FLNG conversion. There's no impact in terms of conversion candidates of Cool Company on the FLNG side of the business.
I guess just switching to kinda our current events, maybe talk about the impact of Ukraine developments on Europe's increasing need for gas and what that could mean for potential opportunities or negotiations as you look forward into 2022, 2023.
I think the most immediate there is obviously the increased or potential increased production on Hilli linked to TTF. It makes sense for Perenco. It makes sense for us. A higher gas price makes it even more attractive. I think that's the most immediate. I think somewhat longer term, the need for diversifying LNG sources, I think is quite, you know, relevant for pretty much anyone in the market, and should go well for the supportive actions for new FLNG projects.
Lastly for me, just a I guess a more numbers question is I guess now maybe talk about your outlook for I guess direct interest expense. You talked about you know the refinancings. Maybe can you talk about what your interest expense looks like going into 2023, given the refinancings?
Eduardo, you wanna take it?
Sure. Hi, Ken. Coming into 2023, as we mentioned before, we have managed to issue $300 million bonds in October, and that was mainly used to repay the convertible bonds in February of this year. If we look further for 2023, our interest expense would be pretty much in line with what we had previously. I think the main effect of the different refinances that took place and the formation of Cool Company will really come with the deconsolidation of $833 million of debt, which at the time of closing of the Cool Company's acquisition of the eight vessels will take effect.
I think this is really like the most important impact to us.
Great. We'll follow up with Stuart on some of the other minor details, but thanks, appreciate the time, and congrats on the Cool Co spin and good luck on the next FLNG project.
Thanks.
Thank you for your question. The next question from Chris Tsung from Webber Research, please go ahead.
Hey, good afternoon, Karl and Eduardo. How are you?
Well, thanks. How are you?
Yeah.
Just following up on the potential options for the Golar Arctic. I know you said, you know, sale, charter, or conversion as an FSRU. If it's the latter, if it's a conversion of an FSRU, could it be something like what you've done with the Golar Viking and converted it for a customer and then sold it and then subsequently managed it?
Yes is the answer.
Oh, is that on the table? Is that what you're looking at now? Or just-
That is a potential venue, and yes, there are projects that could suit that.
Okay. All right. That was easy. Thanks. Speaking of the LNG Croatia, I know that I think Golar is being paid about $2 million a year for managing this and, you know, with the carrier spin down to CoolCo, and along with the commercial and technical team, like does that $2 million still sit with Golar or is that split with CoolCo or does it all go down to CoolCo?
The absolute vast majority of that sits with Golar and stays with Golar.
Okay. Just one last one on the Hilli extension. I know there's an option for Perenco July 2022, and there's no discussions on possible expansions until or no extensions until Perenco until Hilli is fully contracted, right? Is the bogey like the full 2.4 million tons or is this somewhere just above where it's at now?
You're absolutely right that we have been very adamant. In the past, we were not there to talk about extension until they at least declared 0.4. For any extensions, we need to see that we're paid for the full capacity of the unit. We think it's unlikely that the unit will produce up to 2.4 million tons at its current location due to gas flow. Today or last year, we produced 1.2 million tons. This year we produced 1.4 million tons due to the TTF link. Next year it's potentially then up to 1.6 million tons.
If that's declared, then the unit is making decent money until July 2026, and beyond that, we would then look for a contract that would compensate the full 2.4 of capacity, and we need to see the 1.6 to be willing to have that discussion at all with Perenco. I think another caveat is that there is some construction time for new FLNGs. Very soon, Hilli is the fastest available FLNG in the world. She's got no construction risk and the best operational track record in the market. We believe her relative attractiveness is only increasing the closer we get to end of contract than the opposite.
Right. No, that all makes sense. Thank you for the color. That's it for me. Thank you.
Thank you.
Thank you for your question. The next question from Chris Wetherbee from Citi.
Hey, guys. James on for Chris. Just wanted to touch on something you had said about a potential FLNG project on the horizon and getting a customer order around it. When we sort of think about assuming it's a Mark III, essentially the economics around cost, just generally given the inflationary environment and the potential delivery, and is there any sort of other aspect that we should really be thinking about relative to sort of the Hilli or the other projects that you have online at the moment?
I think CapEx wise, we're looking at pretty much around the sort of same rule of thumb of $500 million dollars per ton of liquefaction capacity. If you talk about a 5 million unit, it's basically $2.5 billion, roughly. Yes, there is some inflationary pressure at shipyard prices these days, but there are also some economies of scale of going from 2.5 million tons of production on one hull to 5 million tons of production on one hull. The rule of thumb, I think is still valid for that point, so call it around $500 million in CapEx per ton liquefaction.
Got it. What about a potential delivery time, just given if you put the order in now and the specifications, just the tightness in, order book across shipping generally, what would be sort of a potential delivery date if it was put in at sort of midyear this year?
±4 years from the start.
Got it. You also now have-
Sorry. That's for a 5 million ton. If you do the Mark II, you can significantly shorten it, 2.5-three years.
Understood. Got it. You called up basically three sizable equity investment. Just wanted to understand sort of your plan or for those over time. You mentioned that you viewed them as strategic, but now that sort of some of the broader refinancing and restructuring is done, how do you sort of think about those? There's something that you essentially wanna hold on to or potentially could sell down in order to finance sort of construction of another FLNG project. Just kinda wanted to understand how you thought about those strategically and sort of any long-term plans around them, if you had any.
I think the key rationale as to why we ended up with them, I think is important to understand before we discuss the next step. We think all of them are very attractive businesses and we think all of them have very attractive risk reward from the current share prices. Our rationale for ending up with significant shareholders was the fact that we've been focused on simplifying Golar to be a pure play FLNG owner and operator, and to enable us to crystallize underlying value and strengthen our balance sheet to take on new FLNG projects. For now, we are holders of these names. We think that we will remain holders until the earlier of when these stocks better reflect the underlying value embedded in these companies, or when we can recycle the capital for FLNG growth.
With the new financing facilities that Eduardo has explained during this call, we don't need to pretty much do anything if we're lifting one FLNG project. If we're lifting more, we need to start considering.
Got it. One quick one essentially on the $250 million sort of delayed draw. Any specific uses that have been earmarked for that? And then just I guess broadly, is there anything else that you sort of have on the horizon from sort of a debt financing side, in terms of things that you wanna address? And that's all for me. Bye.
I think on the $250, it's a fairly attractively priced corporate facility. It's got a bullet repayment seven year duration. It enables us to do FLNG growth without having to tap into our publicly listed stocks. For us, it's an attractive risk reward in securing that facility, having flexible draw for the next six months, and hopefully time that with new FLNG projects. We have learned from experience that these are fairly capital-intensive projects that we are undertaking, and it's good to have secured long-term attractive facilities before FIDs versus after. You should see that is really the key rationale. We have no other debt maturities whatsoever until 2025, and we have no near-term ambition to do any further debt optimizations.
We do think that there is a potential to significantly improve the debt facility on Gimi on or around delivery, but there's no need or desire to do that at this point in time.
Thank you.
Thank you for your question. The next question from Omar Nokta from Clarksons Securities.
Thank you. Hey, Karl, Eduardo. Congratulations also on the official completion of the Golar simplification process. I just wanted to ask. I had a couple questions, but first just on the FLNG contract award you're anticipating for this year. Could you maybe talk just about what kind of contract you think that would look like? Is that one that would be similar to that 20-year BP contract on the Gimi? Or do you kind of want to have a bit more skin in the game as you've talked about in the past, and something that maybe emulates the Hilli contract?
I think on the balance, it's more of a long-term tolling fee-based contract, more similar to that of Gimi. As we explained during the presentation, we are seeking to obtain some commodity exposure, and we're working to see if we can achieve that for the 2022 expected award as well.
Thanks, Karl. I guess just regarding the Gimi, you mentioned, you know, instituting a dividend after that starts up. Have you thought about what kind of dividend that would look like? Do you envision that being a regular quarterly payout, or do you anticipate some sort of securitization of that $3 billion backlog in doing maybe a special dividend or some kind of dividend recap?
I think if you talk about return to shareholders and capital allocation, we still have around $25 million of buyback that we can enable. Due to the bond we concluded last year, we are not allowed to pay dividends until Gimi delivers, despite the fact that we can on the basis of Hilli earnings alone. But the plan is to start a regular quarterly dividend following delivery of Gimi. As we have this infrastructure-like returns over time, we should create this to be a stable yield play. With this liquidity position we have, we can afford to pay that dividend while still funding FLNG growth projects out of our cash position.
Okay. Thanks, Karl. Then just on the Gimi, you know, project that, you know, given where LNG prices are in the forward curves, you know, over the next several years, any sort of updates that you're seeing from the Greater Tortue project of that getting expanded? Whether that could potentially lead to more business for Golar.
I think it's an extremely large gas discovery. There's a publicly announced plan to eventually get that to at least 10 million tons of production. With Gimi, we get them a quarter of the way there. On the balance, they are significantly closer to cash flows startup. I think the gas price is significantly higher than the base assumption that the GTA partners assumed for when they took FID. On the balance, getting closer to cash flow, infrastructure in place and better economics than anticipated when taking FID should support growth in our view.
Okay. All right. Karl, just one final one, and you may have addressed this in the past, but just wanted to ask about the Brent-linked component of the Hilli. The dollar of incremental, or sorry, the $3 million of incremental EBITDA for every dollar that you're above $60, it takes you up to a contractual ceiling. Have you disclosed what that ceiling is?
We did back in 50, and it's just over $100.
Okay. Oh, thank you.
To Golar pro rata, $32.27.
Got it. Thanks very much.
Thanks, Omar.
Thank you.
Thank you.
There are no further questions at the moment.
Okay. We would like to thank you all for dialing in to the call today, and we look forward to speaking to you again on our next quarter results. Please do reach out if you have any further follow-ups. Have a good day.