LNG

New Fortress Energy Inc., the expanding LNG terminals, production, shipping and power assets owner, plans to hold a floating LNG investor day at the Kiewit Offshore Services shipyard near Corpus Christi in Texas.

New Fortress has chosen the energy subsidiary of Omaha, Nebraska-based construction giant Kiewit as its partner for the building of FLNG units on the US Gulf Coast and the presentation event will be held from 10:00 am Central Time on November 22.

“Specializing in the fabrication and integration of offshore projects, the 555-acre KOS facility is home to NFE’s ‘Fast LNG’ program and the ongoing conversion of marine infrastructure into floating liquefaction units,” explained NFE in a filing with the Securities and Exchange Commission.

Wes Edens, Chairman and Chief Executive of NFE, said he looked forward to hosting the event at the Texas facility.

“We expect to achieve mechanical completion of our first FLNG unit in March 2023 and deploy FLNG 1 into operation by mid-year, with additional units to follow soon thereafter,” explained Edens.

Skilled workforce

“Utilizing a highly skilled workforce on the US Gulf Coast, we have developed an efficient and repeatable construction process - essentially an FLNG factory - that substantially reduces the cost and time to build incremental liquefaction capacity to meet the urgent needs of the global energy markets,” declared the NFE CEO.

New York-based NFE also recently signed an agreement with Mexico’s national energy company Petróleos Mexicanos (Pemex) to form a strategic partnership including a floating LNG project in the Gulf of Mexico.

The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.

The US company will produce the LNG using its “Fast LNG” vessels to be built at the Kiewit yard.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a lower cost and faster deployment schedules.

Louisiana FLNG

The US company is additionally involved in other FLNG ventures, including one offshore the US Gulf state of Louisiana and another offshore the Republic of Congo in West Africa.

NFE is additionally advancing LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean.

NFE also said recently that it had entered a joint venture valued at $2 billion with New York-based asset management firm Apollo relating to floating storage and regasification units (FSRUs) in the LNG sector and this opened up a long-term financing arrangement.

The July 2022 deal involves NFE selling LNG infrastructure vessels it owns to the newly formed joint company whereby 80 percent would be held by Apollo funds and 20 percent by NFE.

That transaction would create a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE's LNG downstream operations and development activities, as well as Apollo's leading investment and maritime experience.

LNG FSRUs

Outwith the Kiewit Offshore Services shipyard plans NFE has an existing fleet that came from its acquisition in 2021 of Golar LNG Partners and its assorted FSRUs and LNG carriers.

The 11-vessel portfolio of the venture consists of six FSRUs, two conventional LNG carriers and three floating storage units (FSUs).

As part of the Apollo transaction, NFE has agreed to charter 10 of the 11 of the vessels from the Apollo-controlled venture for a period of up to 20 years.

Apollo is a high-growth, global alternative asset management business focusing on select investment strategies.

Exmar, the Belgian shipping line, has reached a settlement agreement with Argentine oil and gas company YPF SA over the dispute under the “Tango FLNG” charter agreements that blew up in June 2020 and the production barge is now available for hire.

The Belgian company said a settlement amount of US$150 million will be paid by YPF to Exmar in consideration of the early termination of their charter agreements and the withdrawing of arbitration proceedings.

“A first instalment of $22m was remitted on October 19. The balance of $128M is payable in 18 monthly instalments backed by adequate financial security,” said Exmar.

The loan agreement with Bank of China and Deutsche Bank with respect to the “Tango FLNG” foresees a replenishment of the Debt Service Reserve Account for an amount up to $40M.

“The specific modalities are currently being discussed with the lenders,” said Exmar.

The Belgian company stated that the FLNG barge with production capacity of around 500,000 tonnes per annum was now available for other projects.

“The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports,” said Exmar.

“Commercial leads for new employment are being actively pursued,” it added.

In addition to owning an LNG FSRU and its FLNG management interests, Exmar owns and manages a fleet of almost 40 other vessels including liquefied petroleum gas (LPG) carriers.

The “Tango FLNG” was first deployed at Bahai Blanca port in Argentina.

The vessel was built at the Chinese Wison shipyard in Nantong and delivered to Exmar in 2017. It had initially been destined for a project in Colombia in South America that was cancelled.

The vessel formally started its operations in Argentina in mid-2019 and a 10-year charter term began in September 2019.

Exmar said the “Tango FLNG” had delivered five shipments, or 624,000 cubic metres of LNG to date with an availability of 99 percent.

The winter season then started in the Southern Hemisphere and liquefaction activities were stopped by YPF in May 2020.

Exmar first announced a YPF “force majeure” for the vessel on June 25, 2020.

YPF used pipeline natural gas to produce the LNG and export it, as a possible prelude to being a future LNG exporter from its huge onshore Vaca Meurta shale gas resources. 

Exmar is led by Chief Executive Nicolas Saverys and has suffered some financial difficulties for several years. However, it continues to manage 10 LNG FSRUs for former partner Excelerate Energy of the US, with whom it started many LNG import projects.

Exmar, the Belgian shipping company with more than 40 vessels in its fleet now mostly focused on the liquefied petroleum gas business, said the outbreak of the coronavirus in China has caused further delays in the release by the Bank of China of $40 million under the “Tango FLNG” loan facility. 

Exmar, which has undergone financial troubles over the past couple of years, had previously said the China Export Credit Insurance Corp. had approved the release of around $40 million from a debt service reserve account under the “Tango FLNG” loan conditions.

The “Tango FLNG” vessel is chartered to Argentina and has exported three cargoes from the port of Bahia Blanca where it produces LNG from pipeline feed-gas.

The vessel was built at the Chinese Wison shipyard in Nantong and delivered to Exmar in 2017. It had initially been destined for a project in Colombia in South America that was cancelled.

Exmar said it was awaiting for the offices of the Chinese authorities to officially re-open and the tranche of money to be paid.

The vessel, chartered by Argentine energy company YPF, formally started its operations in June 2019 and the 10-year charter term began in September 2019.

The “Tango FLNG” production barge can produce around 500,000 tonnes per annum of LNG for domestic sale or export.

Exmar continues to manage 10 LNG floating storage and regasification units, though is not directly involved in regasification projects with former partner Excelerate Energy of the US.

Exmar added in its financial update that under the ongoing arbitration procedure on an FSRU barge with commodities group Gunvor, the financing of the asset could not be completed.

“Meanwhile Exmar obtained a further extension of its bridge loans until the end of February and of certain other capital expenditure until mid-March,” explained the Antwerp-based company.

Exmar is still caught up in a legal dispute with Gunvor over an FSRU barge that was also delivered from the Wison Nantong shipyard in China in 2017.

The Exmar barge with 25,000 cubic metres capacity was the subject of a 10-year Charter to Gunvor signed in October 2018.

Gunvor had been expecting to deploy the barge in Bangladesh. Then the Asian nation cancelled planned small-scale projects to concentrate on a larger venture.

Exmar has also made executive changes in January 2020 as it tries to improve finances after several setbacks to meet the challenges of the year ahead.

Among the changes, it has named Francis Mottrie in the new position of Deputy Chief Executive to work along Nicolas Saverys, the Group CEO.

Golar LNG Partners, the US affiliate of the Bermuda-based fleet owner, swung to a first-quarter loss as it commissioned the “Golar Freeze” offshore Jamaica to serve as an import facility amid a drop of day-rate prices because of high volumes and low season demand.

Argentina said it would take some time before the nation becomes a global player in the liquefied natural gas export market from shale-gas production because of available volumes and costs as well as finding customers.

Wison Offshore and Marine, the Chinese shipbuilding company and builder of the first floating LNG production barge set to be deployed in Argentina, has received approval from the American Bureau of Shipping for its latest Floating Natural Gas-to-Methanol facility, recalling previous methanol and LNG plans for the Tassie Shoal offshore Australia.

Iran could export its first liquefied natural gas cargoes in 2018 under a joint venture contract with a Norwegian company that involves chartering a floating liquefaction hull built in China and available on the market.

Chinese shipyard owner Wison Offshore and Marine signed a strategic cooperation agreement with French maritime LNG storage tank technology firm GTT.

Sept 11 (LNGJ) - Exmar, the Belgian shipping company and project developer whose fleet includes 16 LNG vessels, posted a first-half loss of $20.4 million for its LNG division compared with positive earnings of $24.7M in the same six months of 2016. “The operating result has been negatively impacted by a non-cash impairment of $22.5 million on the ‘Excel’ as well as costs related to the late delivery of the ‘Caribbean FLNG’ hull,” said the company whose Chief Executive is Nicolas Saverys. Exmar said the “Caribbean FLNG” hull was delivered on 27 July 2017 and was currently in lay-up at the Wison shipyard in Nantong, China, where it was built. “Exmar is still in dialogue with multiple entities for the commercial engagement of CFLNG but no revenues are expected for the unit before the second half of 2018,” the company stated.

June 29 (LNGJ) - Belgian LNG shipping and project company Exmar said it had arranged $200 million in financing with Bank of China, Sinosure and a leading European financial institution for its completed Caribbean FLNG hull. The production hull is currently at the Wison Offshore and Marine shipyard in Nantong, China, where it was built while a new project operator is found by Exmar. The original venture proposed for the vessel was in the Latin American nation of Colombia. “The proceeds from the financing will be used to pay the last instalment to the shipyard,” the company said.