LNG

Excelerate Energy Inc., the specialist US company for LNG floating storage and regasification projects from South America to the Nordic region and South Asia, increased annual and quarterly earnings because of new charters in Finland and Germany and increased gas sales.

The Texas-based company reported net income of $126.8 million for the full year 2023, up from $80M in 2022.

For the fourth quarter net income was $122.68M, an increase on the $33.9M posted in the same three months of 2022.

However, Excelerate’s revenues for the year decreased to $1.16 billion from $2.47Bln in the previous year as natural gas prices dropped.

Gas Sales

The company said that income and adjusted gross earnings for the year increased primarily due to new charters in Finland and Germany, higher rates on charters in Brazil, Argentina, and the United Arab Emirates and higher direct margins on gas sales and lower operating lease expense due to the acquisition of the “FSRU Sequoia’, partially offset by drydocking expense for the “FSRU Excellence”.

Excelerate explained that net Income and gross earnings in the fourth quarter decreased from the previous third quarter primarily due to drydocking expenses related to the “FSRU Excellence” and spot LNG cargo sales during that period did not reoccur.

In commercial updates in January 2024, Excelerate noted that a 15-year LNG sales and purchase agreement was signed with QatarEnergy.

Under the accord, Excelerate will purchase between 850,000 and 1 million tonnes per annum of LNG from Qatar on a delivered ex-ship basis beginning in January 2026.

“This contract is expected to provide reliable LNG supply for Excelerate’s previously announced SPA with Petrobangla in Bangladesh,” the company explained.

Excelerate had signed a long-term LNG SPA in November 2023 with Petrobangla for the volumes later secured from Qatar.

Bangaldesh plans

Excelerate will deliver to Bangladesh 850,000 MTPA of LNG in 2026 and 2027 and 1 MTPA from 2028 to 2040.

The take-or-pay LNG volumes are expected to be delivered through Excelerate’s two existing floating terminals in the West Asian nation, the “Excellence” and the “Summit LNG” FSRUs.

Excelerate has additionally signed a 20-year SPA for volumes from the Louisiana LNG projects of Gulf Coast developer and exporter Venture Global.

“The consistent earnings contribution from our core regasification business and the solid performance of our contracts in Brazil highlighted the unique potential of earnings our integrated strategy,” said Steven Kobos, President and Chief Executive of Excelerate.

“In 2024, Excelerate is committed to moving from strategy to action. We remain focused on executing our growth strategy and optimizing our business to deliver superior returns for our shareholders,” Kobos stated.

Excelerate’s full-year earnings per share rose to $1.11 per share from $0.51 per share in 2022.

The Excelerate Board of Directors has authorized a share repurchase programme under which the company may repurchase up to $50M of its outstanding Class A common stock through February 2026. 

Sept 8 (LNGJ) - The government of Bangladesh has short-listed eight global companies, including US and European majors as well as various Japanese companies, to develop the nation’s first onshore liquefied natural gas import terminal.

   The Bangladesh Energy and Mineral Resources Division of the government said it would make the final decision soon on the group chosen to build the facility near the coastal town of Cox’s Bazar on the Bay of Bengal. The proposed new onshore terminal would handle 7.5 million tonne per annum of LNG, which is around the same as the two floating storage and regasification units (FSRUs) currently deployed.

Malaysia and Bangladesh have signed an accord to move towards the Bangladeshis becoming importers of Malaysian liquefied natural gas as other regasification facilities are considered in addition to the floating terminals already operating in the Bay of Bengal.

Russian natural gas pipeline giant Gazprom, owner of the Sakhalin LNG export plant in the Russian Far East, has sent a delegation to meet leaders in Bangladesh to discuss energy cooperation in exploration and production and LNG.

JERA Co. Inc., the  biggest Japanese utility and liquefied natural gas procurement company, said it acquired 22 percent of the outstanding shares in Summit Power International, a generating group operating in Bangladesh and owner of the Asian nation’s second floating LNG import terminal.