LNG

Excelerate Energy, the leading US-based LNG terminal provider in the form of floating storage and regasification units, reported much improved third-quarter results and higher future earnings prospects as projects advanced for Germany and Finland.

Excelerate posted net income for the three months to the end of September of $37.3 million compared with $1.4M in the 2021 quarter.

Revenues for Excelerate in the quarter showed a more than four-fold increase to $803.3M versus $192.1M in the same period last year.

The Texas-based company later confirmed at the end of the quarter the start of the charter process for a project serving Finland and the Baltic state of Estonia.

The Texas-based company also signed a definitive agreement to deploy the FSRU “Excelsior” to Germany for five years.

Excelerate’s “Exemplar’ completed another winter season delivering LNG regasification services to Argentina and in August departed the port of Bahia Blanca and sailed to Europe for maintenance and winterization.

Finland project

The FSRU “Exemplar” was first delivered in 2010 and is 291 metres in length and with a beam of 43 metres and capacity of 151,000 cubic metres.

“Finland’s charter hire commenced in October and winterization upgrades for the ‘Exemplar’ are ongoing,” said Excelerate.

“The ‘Exemplar’ is currently undergoing customer-requested winterization upgrades during a technical stop at the Navantia shipyard in Ferrol (northwest Spain),” said Excelerate

Excelerate and Gasgrid Finland previously announced an executed 10-year, time charter party agreement for Excelerate to provide LNG regasification services, which are expected to commence in the fourth quarter of 2022.

For the German agreement, the “Excelsior” is expected to provide regasification services at Germany’s planned LNG import terminal being developed at the North Sea port of Wilhelmshaven by developer Tree Energy Solutions and the German and French utilities E.ON and Engie.

“Excelerate previously announced that the company and Engie signed a term sheet for the deployment of an FSRU to provide flexible and secure LNG regasification capacity for Germany as it continues to seek alternatives to Russian pipeline gas supply,” said Excelerate.

The US company also recently ordered an FSRU newbuild from Hyundai Heavy Industries of South Korea to be set for hire in the second quarter of 2026.

Earnings overview

The company’s adjusted earnings increased over the prior quarter due to lower idle fuel costs, lower repair and maintenance expenses and higher margins from the Bahia Blanca seasonal charter in Argentina.

Excelerate said this was partially offset by an increase in expenses primarily driven by higher consulting costs to support the company’s transition to a public company structure, along with higher spending related to business development and marketing activities.

“Excelerate delivered another great quarter, demonstrating the strength of our flexible business model against the backdrop of the most significant energy market disruption in decades,” said President and Chief Executive Steven Kobos.

“We are successfully executing our strategy to deploy our flexible LNG infrastructure and pursue downstream opportunities to expand our reach in both new and existing markets,” added Kobos.

“Our portfolio approach to managing our FSRU fleet provides us with a unique ability to deliver the best solutions that scale with our customers’ needs in both developed and emerging markets,” stated the CEO.

The company added that it was increasing its full-year 2022 guidance range.

Adjusted gross earnings are now expected to range between $264M and $274M, up from $249M and $269M.

Excelerate Energy, the US pioneer of floating liquefied natural gas import terminals, said the FSRU “Exemplar” has returned to the Argentine port of Bahia Blanca to support the South American nation’s peak energy demand in the Southern Hemisphere winter.

“The ‘Exemplar’ has begun operations in Bahia Blanca, a port city located 400 miles south of the Argentine capital Buenos Aires,” said Excelerate.

The FSRU has storage capacity of 150,900 cubic metres and deliver regasified LNG for the 2021 winter season in Argentina, providing reliability and stability in the challenging conditions of the South Atlantic.

The vessel has been chartered for use by Integración Energética Sociedad Anónima (IEASA), previously known as Enarsa (Energía Argentina S.A.), a state-owned company and the national oil and gas company, and Yacimientos Petrolíferos Fiscales (YPF) S.A. to deliver an energy solution

“We are excited to return to Bahia Blanca and continue our partnership with IEASA and YPF to deliver an energy solution that is flexible, cost-effective, and environmentally-friendly during a critical period of peak demand,” said Daniel Bustos, Excelerate’s Chief Commercial Officer.

“We are confident the ‘Exemplar’ can perform again with our local Argentine crew to support the country’s energy transition and post-Covid economic recovery this winter,” added Bustos.

The return of the FSRU comes after Excelerate recently won an international, competitive tender for seasonal regasification service in Bahia Blanca.

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, since 2011.

The Excelerate company has started FSRU-led import ventures in the US, South America, Asia and the Middle East and has its headquarters in The Woodlands in Houston in Texas.

It is part of a privately held US energy group founded by American businessman George Kaiser, who is also the majority shareholder of the publicly-traded Bank of Oklahoma. 

The South American nation of Chile has imported 2.23 million tonnes of LNG during the first 10 months of the year, down 5.7 percent on the same period of 2018 as pipeline gas supplies from Argentina have provided competition.