Golar LNG Ltd.

Earnings Release • May 27, 2010

GOLAR LNG ENERGY LIMITED - FIRST QUARTER 2010 RESULTS

Highlights

·           Golar LNG Energy reports net loss of $10.9 million and operating

income before depreciation and amortisation of $2.0 million

·           Spot trading vessels results very weak with outlook for Q2 similar

·           Golar Energy announces the establishment of a new venture to embark

on managing and trading LNG cargoes

·           Termination of various agreements in respect of Gladstone LNG

Fisherman's Landing project

·           Floating regasification project development continued high level of

activity

Financial Review

Golar LNG Energy Limited ("Golar Energy" or the "Company") reports net loss of

$10.9 million and operating income before depreciation and amortisation of $2.0

million for the quarter to March 31, 2010 (the "first quarter").

Revenues in the first quarter of 2010 (the "first quarter") were $14.5 million

as compared to $22.6 million for the fourth quarter of 2009 (the "fourth

quarter"). The decrease is due to a very weak market for vessels operating in

the spot market. As a result utilisation for the first quarter was down at 50%

compared to 90% for the fourth quarter and first quarter average daily time

charter equivalents ("TCEs") decreased to $16,795 compared to fourth quarter TCE

of $36,480.

Voyage expenses, principally fuel costs whilst the vessels are not on time

charter, were $5.4 million for the first quarter and operating expenses were

$5.9 million as compared to $3.0 million and $6.8 million respectively for the

fourth quarter. Administrative expenses were $1.2 million in the first quarter

compared to $4.7 million in the fourth quarter mainly due to lower project

development costs in respect of liquefaction projects.

Net interest expense was $3.7 million for the first quarter as compared to $4.0

million in the fourth quarter.

Other financial items was an expense of $0.4 million as compared to a gain of

$0.7 million in the fourth quarter. This is as a result of interest rate swap

valuation losses in the first quarter as compared to gains in the fourth

quarter.

The net gain on sale of investee of $0.8 million represents the sale of 2.1

million LNG Limited shares for a total consideration of $1.3 million.

Financing, corporate and other matters

The Company has recently announced that it is to establish a new subsidiary, to

be named Golar Commodities, which will position the Company in the market for

managing and trading LNG cargoes. Activities will include structured services to

outside customers (such as risk management services), arbitrage activities as

well as proprietary trading. In order to manage the business, the Company has

recruited a group of 5 individuals with extensive experience in LNG and

commodities trading. The Company will make a significant equity investment in

its new subsidiary, which will be drawn from its cash reserves. The new

subsidiary will be further supported by credit lines from commercial banks. It

is expected that this new business area will be fully operational from September

The Company's management company, Golar Management Ltd, and the present

technical sub-manager for all of the Company's vessels, Wilhelmsen Ship

Management (Norway) AS, are in the process setting up a joint venture company,

Golar Wilhelmsen Management AS. ("Golarwil") that will be a specialised

technical manager of LNG vessels. It is the intention that all the Company's LNG

vessels will be managed by Golarwil. The new structure benefits from the

economies of scale of bringing the fleet together under one manager. In addition

it provides the Company with more day-to-day involvement which is important

particularly with FSRU vessels and other non standard LNG carriers and at the

same time provides the benefits of the resources of a large ship management

organisation. The actual management transfer of the LNG vessels will take place

from late July and throughout August 2010.

During the quarter the Company sold 2.1 million LNG Limited shares for

approximately $1.3 million. Subsequent to the quarter end Company sold a further

2.8 million shares for approximately $1.4 million. The transactions reduce the

Company's shareholding in LNG Limited to approximately 4% of LNG Limited's

issued share capital.

Subsequent to the quarter end the Company issued 165,000 share options to

employees at a strike price of $2.20. The options vest over a period of two

years and three months. Total Company options outstanding after this issue are

4,105,000.

Operational Review

Shipping

Overall spot trade in 2010 began in similar fashion to 2008 and 2009 -

struggling to absorb a large number of new buildings in a climate of weak demand

and a lack of FOB spot cargoes.  Winter demand 2009/2010 fell away in mid

January and no consistent spot opportunities were available after that point.

Very little chartering activity has reached the open market and the most visible

spot/short term opportunities from supply projects this year have come from

Trinidad, Abu Dhabi, N.W. Shelf and Nigeria LNG.  Statoil's fixing of the

Gemmata for up to 3 years and Gazprom taking a Dynacom ice-class vessel for 2

years have also occurred as well as a re-exports out of Sabine Pass and

Zeebrugge.

There were a number of factors affecting spot market activity but the effect of

a continuing excess of tonnage together with a lack of spot product and the

effect of term buyers exercising downward contract quantity ("DCQ") adjustments

has caused a severe drop in spot activity and charter rates.  Spot charter rates

have also been adversely impacted by worldwide falling spot gas prices which may

further soften as we move into the summer period.  Current spot charter rates

are in the region of $30,000 per day, however, achieving a reasonable level of

utilisation in the current weak market is extremely challenging. Additionally,

high fuel oil bunker costs make it difficult to strategically position spot

market ships to take advantage of occasional FOB cargo sales.

Plant outages have also had an impact although tentative demand recovery in the

Far East markets coupled with (as mentioned above) Far East buyers already

having exercised DCQ adjustments in long-term contracts may increase the

potential for spot cargoes. The additional LNG capacity coming on stream in the

second half of 2010 should also help to improve the ship market balance. Other

recent indications of a possible improvement in the shipping market with Statoil

taking a vessel on a 3 year hire from June of this year and Total reportedly

close to fixing a spot vessel on a 2 year assignment to cover project structural

requirements remain pointers to a recovery.  These and a current Chinese

Petroleum Corporation shipping requirement may well be early indications of an

increase in spot cargo prospects but as yet it is too soon to say if this will

provide any sustained improvement in market activity in the short-term.

The current fleet now stands at 348 including lay-ups and regasification

vessels. New vessels on order amount to 35 including regasification and Floating

LNG vessels.

Regasification

Credible progress continues in the development of new floating storage and

regasification projects.  Project details are becoming clearer and more certain

with more credible interested parties. In addition to the very strong Asia

demand and solid inquiry from the Americas, new market interest has occurred in

the Middle East and Africa.  In addition to new inquiries, those projects being

developed on a tender basis are largely keeping to schedule.  As an update to

public market activity:

·         Indonesia (West Java):  Golar Energy qualified in addition to four

other parties for Pertamina and PT Perusahaan Gas Negara (Persero) Tbk ("PGN")

joint venture's tender.  Golar Energy is preparing its bid submission with a

contract award targeted for 3Q2010.

·         Indonesia (Sumatra): The ~1-2 MTA/year floating storage and

regasification terminal remains targeted for a 2012 start-up in North Sumatra.

PGN is finalizing the selection of a Project Manager ("PMC").  The

Pre-Qualification and Tender is expected to occur in 2H2010.

·         Jamaica: Golar Energy submitted a proposal of interest in response to

the Petroleum Corporation of Jamaica's request for proposals. PCJ's formal

decision on its tender is outstanding.

·         Israel:   Golar Energy was selected along with a small field of

qualifiers to participate in the tender for an offshore LNG receiving terminal,

targeted for a 2H2013 start-up.  The tender is reportedly expected to be

launched in 4Q2010.

* Uruguay:  Foster Wheeler Iberia, the project's appointed PMC, continues to

develop the tender scope with a tender expected to be issued at the end of

the 3(rd) quarter of 2010 for first gas in 2013.

· Argentina: Repsol and Enarsa have issued a tender for their Puerto Escobar

project which is targeting first gas by June 2011. Enarsa are also developing a

replacement project for Bahia Blanca.

In addition to the above public market activity, significant development

activity continues on a direct basis. In total, Golar FSRU developers are

engaged in or monitoring FSRU opportunities in over 25 countries with some

countries offering multiple opportunities. In addition to the increasing number

of interested parties, the types of inquiries have become more diverse: FSRUs

for benign and harsh environment; site locations near shore and offshore;

project specified mooring solutions and vaporisation technology; and project

volume scale further broadening to consider smaller LNG import volumes and

therefore, leaner solutions.

Whilst development activity will take time, the Company remains patient but

pro-active in pursing the next Golar FSRU. However, the diversity of

opportunities noted above is to some extent encouraging as Golar Energy's

approach is based on developing fit for purpose solutions.  Each of Golar's

three projects to date was based on three distinctly different FSRU designs. The

Company believes this approach of converting an LNGC to an FSRU based on a

specific client's requirements as offering customers the best value proposition

in terms of speed of project implementation and overall project cost.

Liquefaction

During the quarter Golar Energy announced the termination of the various

agreements relating to the Gladstone LNG Project as a result of a conditional

takeover proposal of Arrow Energy ("Arrow") (gas supplier to the Gladstone LNG

Project) by Royal Dutch Shell and PetroChina. The agreements terminated were

Golar Energy's shipping and marketing Heads of Agreement ("HoA") with Arrow, the

HoA with Toyota Tsusho Corporation in respect of the LNG supply and the original

HoA with LNG Limited for the offtake of LNG from the Gladstone LNG Project.

Golar Energy remains of the view that the Gladstone LNG Project site at

Fisherman's Landing, the mid-scale nature of the LNG plant and all the work

undertaken to date, renders the Gladstone LNG Project with the potential to be

developed and commercialised, in a much shorter time frame and at a lower cost

per produced tonne of LNG than other, much larger, LNG projects proposed by

others in the Port of Gladstone. LNG Limited is in a position to attract

interest from other parties in the region with respect to gas supply and the

development of the Gladstone LNG Project as an alternative to Arrow.

Under the terms of the June 2006 Collaboration Agreement, between the LNG

Limited and Golar Energy, which remains in place, Golar Energy will continue to

take an interest in the alternative development options for the Gladstone LNG

Project in order to try to achieve a positive outcome for shareholders.

Golar Energy will continue to actively pursue floating liquefaction ("FLNG")

projects and other floating LNG solutions which fit with its financial

objectives and best capture its technical capabilities. Golar Energy's FLNG

strategy will be expanded to include the development of low capital cost, rapid

deployment floating production facilities utilising the conversion of high

quality existing LNG carriers, floating technologies for the liquefaction of

pipeline quality gas or associated gas (requiring minimal processing) and

seeking other innovative LNG solutions. This strategy complements Golar Energy's

industry leadership position in floating LNG regasification facilities

development.

Market

Spot market shipping demand fell away quicker than would normally be the case

given the length and severity of the winter, resulting in reduced opportunities

for Golar Energy ships trading on the spot market.  Current indications are that

this lack of short term activity will continue well into the year with only

occasional cargoes becoming available in both Atlantic and Pacific basins.  The

market is therefore typified by a number of vessels competing for the same

cargoes over short hire periods at depressed charter rates.

By the end of January we saw the first hints of a slowdown in flows to N.W.

Europe with a re-export cargo from Zeebrugge to ease LNG storage constraints

making its way to Mexico.  Supply, meanwhile, continues to build.  In Qatar,

Rasgas Train 7 was commissioned, Yemen continued its ramp-up and Tangguh

continued to send cargoes to Sempra's Costa Azul terminal.  Qatargas-3 Train 6

is slated to begin operations mid-year and Qatargas-4 Train 7 is scheduled for

completion in September 2010.

Once viewed as a lucrative market for imported LNG, the US Northeast and

Mid-Atlantic regions now have emerging sources of domestic gas supply in the

form of shale gas, which has exerted pressure on imported LNG volumes.

The large increase in LNG production combined with the extensive construction of

import terminals around the world provides the basis for a more logistical

approach to the LNG market. This trend is further enhanced by low shipping

rates, the seasonality of the market and the global price differentials between

the Asian, European and American gas markets.

The changing developments in the trading pattern for LNG provides an interesting

opportunity for LNG shipping as well as Golar Energy's LNG new trading venture.

The continuing separation of oil and gas prices further enhances this as it

provides the opportunity to reduce the energy costs to end users by substituting

oil products with flexible delivery of LNG.

Outlook

An over-supply of LNG has developed as the LNG industry has suffered from

the global recession and the successful development of shale gas in the US.

However, given its environmental benefits over other hydro-carbon fuels and its

cost competiveness, particularly against oil, it is highly likely that LNG

demand will continue to grow. The strong gas demand coming out of China and

other new emerging markets further supports this case. On the supply side the

development of unconventional gas supplies such coal bed methane in Queensland

Australia provides increased LNG supply growth potential.

Nevertheless, the short-term weakness in the LNG commodity market has negatively

impacted shipping.  By end of 2010 there is a significant decline in the rate of

growth of the fleet. The Company believes that the shipping market will begin to

tighten over the next twelve to eighteen months although in the near term the

market will likely remain weak.

There are clear similarities between the more flexible structure of the LNG

market which is now emerging and the opening of the crude oil market in the

1970's. There is increased activity by traders and spot cargoes are still at a

limited level. The Board therefore believes that this is a good time to be

building a position in this market area and as such is extremely pleased with

the setting up of Golar Energy's new LNG trading venture.

The floating regasification market outlook continues to be positive and the

Company believes that there will be a few new FSRU contracts awarded during

2010. The Company believes that it is in a good position to secure contracts

based on its previous experience in this market.

The Company will selectively continue to pursue small scale opportunities within

the FLNG market. The Company also believes that further worldwide opportunities

exist in solutions which integrate power production and regasification

projects.

Operating results for the second quarter of 2010 are highly likely to be

significantly negatively impacted by continued very weak results from the

Company's vessels operating in the spot market. There are however good reasons

for expecting a much needed improvement in shipping rates in the medium to

long-term. The Company is also optimistic about the potential for its new LNG

logistic venture, Golar Commodities. The Board is not pleased with the

development in the Company's share price after the IPO last August but is

hopeful that the recent corporate actions and a better supply demand balance in

the LNG shipping market can strengthen the investment case.

Forward Looking Statements

This press release contains forward looking statements. These statements are

based upon various assumptions, many of which are based, in turn, upon further

assumptions, including examination of historical operating trends made by the

management of Golar LNG Energy. Although Golar LNG Energy believes that these

assumptions were reasonable when made, because assumptions are inherently

subject to significant uncertainties and contingencies, which are difficult or

impossible to predict and are beyond its control, Golar LNG Energy cannot give

assurance that it will achieve or accomplish these expectations, beliefs or

intentions.

Included among the factors that, in the Company's view, could cause actual

results to differ materially from the forward looking statements contained in

this press release are the following: inability of the Company to obtain

financing for the new building vessels at all or on favourable terms; changes in

demand; a material decline or prolonged weakness in rates for LNG carriers;

political events affecting production in areas in which natural gas is produced

and demand for natural gas in areas to which our vessels deliver; changes in

demand for natural gas generally or in particular regions; changes in the

financial stability of our major customers; adoption of new rules and

regulations applicable to LNG carriers and FSRU's; actions taken by regulatory

authorities that may prohibit the access of LNG carriers or FSRU's to various

ports; our inability to achieve successful utilisation of our expanded fleet and

inability to expand beyond the carriage of LNG; increases in costs including:

crew wages, insurance, provisions, repairs and maintenance; changes in general

domestic and international political conditions; the current turmoil in the

global financial markets and deterioration thereof; changes in applicable

maintenance or regulatory standards that could affect our anticipated

dry-docking or maintenance and repair costs; our ability to timely complete our

FSRU conversions; failure of shipyards to comply with delivery schedules on a

timely basis and other factors listed from time to time in subsequent

announcements and reports. Nothing contained in this press release shall

constitute an offer of any securities for sale.

May 26, 2010

The Board of Directors

Golar LNG Energy Limited

Hamilton, Bermuda

Questions should be directed to:

Golar Energy Management Ltd

Oscar Spieler: CEO - +65 6296 5518

Golar Management Ltd - +44 207 063 7900:

Graham Robjohns: CFO

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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