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EQUITY METHOD INVESTMENTS | 12 Months Ended
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Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract] |
EQUITY METHOD INVESTMENTS |
17. | EQUITY METHOD INVESTMENTS
On April 15, 2021 we completed the GMLP and Hygo Mergers and retrospectively presented our share of earnings/(losses) in Golar Partners and Hygo, and the associated carrying values of our equity accounted investments as net income/(loss) from discontinued operations (note 14). At December 31, 2021 and 2020, we have the following participation in investments that are recorded using the equity method:
| 2021 |  | 2020
Egyptian Company for Gas Services S.A.E (“ECGS”) | 50.0 | % |  | 50.0 | %
Avenir LNG Limited (“Avenir”) | 23.5 | % |  | 23.1 | %
The carrying amounts of our investments in our equity method investments as at December 31, 2021 and 2020 are as follows:
(in thousands of $) | 2021 |  | 2020
Avenir | 47,913 |  |  | 39,984 |
ECGS | 4,302 |  |  | 4,401 |
Total equity method investments | 52,215 |  |  | 44,385 |
The components of our equity method investments are as follows:
(in thousands of $) | 2021 |  | 2020
Balance as of January 1 | 44,385 |  |  | 32,816 |
Additions | 6,750 |  |  | 11,250 |
Capitalized interest | — |  |  | 857 |
Net income/(losses) from equity method investments | 1,080 |  |  | (538) |
Balance as at December 31 | 52,215 |  | 44,385
ECGS In December 2005, we entered into an agreement with the Egyptian Natural Gas Holding Company and HK Petroleum Services to establish a jointly owned company, ECGS, to develop operations in Egypt, particularly in hydrocarbon and LNG related areas. In March 2006, we acquired 0.5 million common shares in ECGS at a subscription price of $1 per share. This represents a 50% interest in the voting rights of ECGS and, in December 2011, ECGS called up its remaining share capital amounting to $7.5 million. Of this, we paid $3.75 million to maintain our 50% equity interest. ECGS does not have quoted market price because the company is not publicly traded. As ECGS is jointly owned and operated, we have adopted the equity method of accounting for our 50% investment in ECGS, as we consider we have joint control. Avenir In October 2018, Golar, Stolt-Nielsen Ltd, (“Stolt-Nielsen”), Höegh LNG Holdings Limited (“Höegh”) entered into a joint $182.0 million investment in Avenir. Golar had contributed $24.8 million in exchange for an initial shareholding of 25% of Avenir. The other shareholders, Höegh and Stolt-Nielsen held initial shareholdings of 25% and 50%, respectively. In November 2018, Avenir announced a private placement of 110 million new shares at a par value price of $1.00 per share. Stolt-Nielsen, Golar and Höegh subscribed for 49.5 million, 24.75 million and 24.75 million shares, respectively. Institutional and other professional investors had subscribed for the remaining 11 million shares. The ownership of Avenir held by Stolt-Nielsen, Golar and Höegh after the placement was diluted to 45%, 22.5% and 22.5%, respectively. In March 2020, Avenir issued an equity shortfall notice of $45.0 million which was funded through issuance of additional shares at a par value of $1.00 per share. As of December 31, 2021, we had fully injected our committed equity of $18.0 million to Avenir, bringing our total contribution to Avenir of $42.75 million, representing 23.5% ownership. Interest costs capitalized on the investment in Avenir for the years ended December 31, 2021 and 2020, were $nil and $0.9 million respectively.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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