LNG

Excelerate Energy, the leading US provider of floating LNG import terminals facing increased global demand in Europe and elsewhere for its services, has extended its credit facilities as activities increase and to finance the purchase of a vessel.

Excelerate Energy, the US LNG specialist and a market leader in floating storage and regasification units (FSRUs), saw its shares increase by 11.8 percent in its trading debut after raising $384 million in the biggest US initial public offering since January 2022.

Shares in Excelerate closed on April 13 at $26.85 per share, giving the company a market value of about $2.8 billion based on the outstanding shares listed.

Excelerate shares are now quoted on the New York Stock Exchange under the ticker symbol “EE”.

Excelerate sold 16 million shares at the top of a marketed range of $21 to $24 per share in its IPO.

The share sale came at a time when FLNG project interest is increasing worldwide as nations try to underpin their energy security with fast-track import projects.

The company has pioneered over a dozen import ventures worldwide and has also led the way in ship-to-ship LNG transfers.

Excelerate, based in The Woodlands in Houston in Texas, is part of a privately held US energy group founded by George Kaiser, owner of the Bank of Oklahoma. Kaiser will continue to control the majority of the shares.

Developer

Excelerate developed the Bahia Blanca GasPort, South America’s first LNG import terminal in 2008, and has also operated GNL Escobar, an LNG import terminal along the Paraná River of Argentina, since 2011.

The business spans the globe, with regional offices in eight countries and operations in the US, Brazil, Argentina, Israel, United Arab Emirates, Pakistan and Bangladesh.

The Excelerate prospectus for the IPO informed potential shareholders that it was the largest provider of regasified LNG in Argentina and Bangladesh and one of the largest providers of regasified LNG in Brazil and Pakistan, while also operating the biggest FSRU in Brazil.

The Excelerate company has additionally started FSRU-led import ventures in the US and the Middle East.

Excelerate had net income of $41 million and revenue of $889M in 2021 compared with $33M of profits and $431M in revenues in the previous year.

Höegh LNG Partners, the US-listed company whose dominant shareholder is the de-listed Höegh LNG Holdings which is now partnered with the infrastructure unit of US investment bank Morgan Stanley, reported reduced third-quarter earnings in three revenue fronts for a reduced fleet of five vessels.

Höegh LNG Partners, the US affiliate of Höegh LNG Holdings now partnered with the infrastructure unit of US investment bank Morgan Stanley, has seen its shares plunge over 60 percent after the dividend was slashed.

Höegh LNG, the Norwegian project company and fleet owner, said it was business as usual on the high seas, at import terminals for deliveries and production plants for liftings despite the challenges.

The Singapore office of international law firm, Ince, has given additional details of the planned Hong Kong offshore LNG import terminal project, involving the world’s largest floating storage and regasification unit.

Ince acted as adviser to the Japanese shipping line, Mitsui O.S.K. Lines (MOL), which is chartering the FSRU to two Hong Kong utilities.

The project involves a joint venture between sponsors Castle Peak Power Co. Ltd. and the Hongkong Electric Co.

MOL will provide the vessel “MOL FSRU Challenger”, along with operations and maintenance services, to the project aimed at supplying regasified LNG for gas-fired power at the Black Point and Lamma Island power stations.

“With a storage capacity of 263,000 cubic meters, the ‘MOL FSRU Challenger’ is the largest FSRU in the world and the project will ensure a reliable and stable fuel supply for Hong Kong,” said Ince.

The “MOL FSRU Challenger” is currently deployed as an import facility offshore Turkey.

MOL had previously said the FSRU is expected to enter service off Hong Kong around the end of 2020 or early 2021 and after an accord was signed by the shipping line back in June 2018.

The Japanese-owned vessel will supply the Black Point Power Station located in the New Territories and the Lamma Power Station on Lamma Island to improve air quality and the environment in Hong Kong, which was returned to Chinese sovereignty in 1997 after 156 years of British rule.

Law firm Ince said it advised MOL on the negotiation of the FSRU Time Charter Party and Services Agreement, Hong Kong regulatory issues and complex finance-related issues.

The Ince team which comprised of shipping, energy and finance lawyers was led by Devandran Karunakaran, Singapore office Managing Partner, with a team of lawyers from Singapore and Hong Kong.

“We are delighted to have supported one of our key clients, MOL, on this project, a milestone both in terms of the FSRU and energy sectors,” said Karunakaran.

“Ince’s role in this project is a testament to our vast experience in, and continued commitment to, the offshore energy sector in general and the FSRU sector in particular,” he added.

“Our cross-border team was able to give real-time advice on shipping, offshore energy, finance and local regulatory issues,” the lawyer stated.

Simon Hems, the firm's head of Energy and Infrastructure and a Partner in London, said Ince's involvement in supporting one of the most significant players in this market-leading project, is testament to its global team’s ability to advise on complex, cross-border energy projects.

“We look forward to standing with MOL in their future endeavours and wish them every success with the Hong Kong Offshore LNG terminal project,” said Hems.