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EQUITY METHOD INVESTMENTS | 12 Months Ended
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Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investments |
17. | EQUITY METHOD INVESTMENTS
At December 31, 2022 and 2021, we have the following participation in investments that are recorded using the equity method:
| 2022 | 2021
Egyptian Company for Gas Services S.A.E (“ECGS”) | 50.0 | % | 50.0 | %
Avenir LNG Limited (“Avenir”) | 23.5 | % | 23.5 | %
CoolCo | 8.3 | % | — | %
Aqualung Carbon Capture AS (“Aqualung”) | 4.4 | % | — | %
The carrying amounts of our equity method investments as of December 31, 2022 and 2021 are as follows:
(in thousands of $) | 2022 | 2021
CoolCo | 55,439 |  | — |
Avenir | 41,790 |  | 47,913 |
ECGS | 4,503 |  | 4,302 |
Aqualung | 2,376 |  | — |
Equity method investments | 104,108 |  | 52,215 |
The components of our equity method investments are as follows:
(in thousands of $) | 2022 | 2021
Balance as of January 1, | 52,215 |  | 44,385 |
Additions | 129,662 |  | 6,750 |
Net income | 19,041 |  | 1,080 |
Guarantee fee | 1,708 |  | — |
Employee stock compensation | 127 |  | — |
Share of other comprehensive losses | (797) |  | — |
Proceeds from disposal | (97,848) |  | — |
Balance as of December 31, | 104,108 | 52,215
CoolCo In January 2022, we entered into the Vessel SPA with CoolCo, as further described in note 14.1. In November 2022, we sold 8.0 million of our CoolCo shares or 11.2% at NOK 130 per share for net consideration of $97.9 million, inclusive of $1.5 million fees. Concurrent with the sale of our CoolCo shares, CoolCo announced a private placement of 13.7 million new shares at NOK 130 per share which further diluted our interest in CoolCo. Following our sale of CoolCo shares and CoolCo’s issuance of new shares, our remaining equity holding in CoolCo reduced to 4.5 million shares, or 8.3% as of December 31, 2022. This is a partial disposal of an entity in which we have retained the ability to exercise significant influence and the total gain on disposal of our interest in CoolCo of $0.4 million is included in the consolidated statement of operations line-item “Net income/(losses) from equity method investments”. As of December 31, 2022, CoolCo shares were listed on Euronext at NOK 113.70 $11.60 per share. 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”) and Höegh LNG Holdings Limited (“Höegh”) entered into a joint $182.0 million investment in Avenir. Golar 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. As a result, Avenir has been considered as our equity method investment. In March 2020, Avenir issued an equity shortfall notice of $45.0 million which was funded through issuance of additional shares at par value of $1.00 per share. As of December 31, 2022, our $18.0 million commitment to Avenir was fully funded, resulting to a total investment of $42.75 million, representing a 23.5% ownership interest. Aqualung Aqualung is an Oslo-based technology company that has developed and achieved proof of concept for a CO 2 capture and separation membrane technology which could be used to reduce carbon emissions for future FLNG projects. In May 2022, we invested $2.4 million, together with other key strategic partners, DK Innovations (US) Inc., Global Ship Lease Inc., MKS Pamp Group Limited and Standard Lithium Ltd., amounting to a total equity injection of $10 million which resulted in Golar’s 4.4% ownership interest in Aqualung. In August 2022, we were granted representation on the board and accordingly, Aqualung has been considered as an equity method investment. Summarized financial information of our equity method investments shown on a 100% basis are as follows:
(in thousands of $) | December 31, 2022
| CoolCo | ECGS | Avenir | Aqualung
Balance Sheet |  |  |  |
Current assets | 145,338 |  | 36,504 |  | 34,028 |  | 5,900 |
Non-current assets | 1,912,723 |  | 97 |  | 270,177 |  | 159 |
Current liabilities | (278,589) |  | (25,501) |  | (69,509) |  | (359) |
Non-current liabilities | (1,063,959) |  | (931) |  | (92,694) |  | — |
Statement of Operations |  |  |  |
Revenue | 256,434 |  | 58,680 |  | 62,875 |  | 245 |
Net income/(loss) | 110,744 |  | 713 |  | (16,217) |  | (2,830) |
(in thousands of $) | December 31, 2021
| CoolCo | ECGS | Avenir | Aqualung
Balance Sheet |  |  |  |
Current assets | 79,293 |  | 41,690 |  | 59,741 |  | 73 |
Non-current assets | 1,387,215 |  | 107 |  | 208,949 |  | — |
Current liabilities | (417,453) |  | (31,028) |  | (38,557) |  | (70) |
Non-current liabilities | (306,000) |  | (931) |  | (66,179) |  | — |
Statement of Operations |  |  |  |
Revenue | 171,919 |  | 80,972 |  | 16,538 |  | — |
Net (loss)/income | 48,368 |  | 55 |  | 7,119 |  | (472) |

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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 https://asc.fasb.org/topic&trid=2196965 + Details
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