LNG

Belgian shipping company Exmar reported modest earnings though expects company finances to improve after a charter deal for its LNG storage and regasification unit (FSRU) barge to be the new Dutch LNG import terminal at the port of Eemshaven.

Belgian shipping company Exmar, owner of the “Tango FLNG” barge last deployed in Argentina and now up for re-charter, said it was getting its finances back on track after payments from Argentine energy company YPS and financing deals for other parts of its fleet.

Belgian shipping company Exmar, owner of the “Tango FLNG” barge from Argentina now up for re-charter, reported increased third-quarter consolidated earnings.

Exmar, based in the port of Antwerp, said its operating result came to $22 million in the three months to September compared with $21M in the same quarter of 2019.

The company’s gross quarterly earnings jumped to $58.8M from $27.4M in the prior-year quarter.

Exmar is led by Chief Executive Nicolas Saverys and also 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.

The company said that its Midsize Gas Carriers business continued on its upward trend while pressurized-ships spot market was suffering due to low refinery activity.

Exmar announced in October that it had reached a settlement deal with Argentine oil and gas company YPF SA over the dispute under the “Tango FLNG” charter agreement that blew up in June 2020. The LNG production barge was now available for re-hire.

Under the accord, YPF has agreed to pay Exmar $150M in consideration of the early termination of their charter agreement and the withdrawal of arbitration proceedings.

The Belgian company's FLNG barge has production capacity of around 500,000 tonnes per annum. It was first deployed at the Bahia Blanca port in Argentina.

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

The FLNG vessel, bullt at the Chinese Wison shipyard in Nantong, China, 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.

In its latest earnings, Exmar added that its infrastructure division posted an operating result of $4.1 compared with $700,000 in the same three months of last year.

The earnings had been “negatively affected” by the recognition of a provision of $16.4M on uncollected revenues from YPF for the “ Tango FLNG” barge.

However, the settlement deal will be reflected in fourth-quarter earnings for October to be published in 2021.

The loan agreement with Bank of China and Deutsche Bank with respect to the “Tango FLNG” financing foresees a replenishment of the Debt Service Reserve Account for an amount up to $40M, of which $22M has already been paid.

“The modalities for the payment of the balance are still under discussions,” added Exmar.

The company said that the FLNG barge was now being prepared for demobilization. “Commercial leads for new employment are actively being pursued,” stated Exmar.

A second Exmar vessel, a floating storage and regasfication unit, continues serving under a charter party with global commodities firm Gunvor, even though it is not yet deployed.

“Arbitration with respect to a dispute under the contract is ongoing without financial impact,” Exmar explained.

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 line with a fleet of more than 40 vessels, posted its best first-half results of recent year and gave an update on the “Tango FLNG” production barge “force majeure” ongoing since June as well as the latest events relating to its financial position as a going concern.

April 17 (LNGJ) - Exmar, the Belgian shipping and projects company with more than 40 vessels in its fleet and now mostly focused on the liquefied petroleum gas business and LNG shipping management, has appointed a new Chairman and Chief Executive after the incumbent Chairman, Baron Philippe Bodson, aged 75 and a Belgian national, died from the Covid-19 virus.

   “On the 4th of April our Chairman of the Board, Baron Philippe Bodson, sadly passed away after his fight against Covid-19,” said Exmar in a statement. “Subsequently the Exmar Board convened,” it added. Exmar said Nicolas Saverys, previously CEO, would take up the position of Executive Chairman as the successor to Baron Bodson and Francis Mottrie, Deputy CEO, is appointed CEO.

   Exmar’s best-known LNG vessel is the “Tango FLNG” barge chartered to Argentina and deployed at the port of Bahia Blanca to produce LNG from pipeline feed-gas from the onshore Vaca Muerta Shale Basin.

Exmar, the Belgian shipping company with more than 40 vessels in its fleet now mostly focused mainly on the liquefied petroleum gas business, said the its “Tango FLNG” vessel chartered to Argentina was set to export its third cargo as the company’s finances also improved.

Exmar, the Belgian shipping line and owner of the “Tango FLNG” hull chartered to Argentina, said the production vessel has now been fully commissioned after the loading of the first cargo.

“The performance acceptance tests have been successful, the first cargo has been offloaded and will be exported out of Argentina,” said Exmar.

“With this first shipment the start-up of the Tango FLNG is accomplished in a record time following the contract signing in November 2018 and delivery acceptance of the unit in Bahia Blanca in February 2019,” explained Exmar.

Antwerp-based Exmar said the First Argentine shipment has been possible thanks to the excellent cooperation between the teams of Argentine energy company YPF and Exmar.

Exmar stated that the first YPF LNG cargo amounted to around 25,000 cubic metres of gas from Vaca Muerta shale gas reserves in northwest Argentina and marked the entry of Argentina to the club of global LNG exporting nations.

“For Exmar, the successful performance test in Bahia Blanca confirms the technical capabilities of the ‘Tango FLNG’, the first such vessel operating in the Americas,” said Nicolas Saverys, Exmar’s Chief Executive.

“The unit is generating earnings since early May and is expected to be fully on stream after the Argentine winter season,” added the CEO.

“Exmar’s Board of Directors and Executive Committee wish to thank all employees and stakeholders in this project for the great dedication and impressive execution work over the past months,” said the Belgian company.

The “Tango FLNG” plant is chartered under a 10-year agreement from Belgian shipping company Exmar.

The vessel is the former floating liquefaction unit, “Caribbean FLNG”, constructed for a cancelled venture in the South American state of Colombia and renamed before being sent to Argentina.

YPF did not specify the destination of the first shipment, though said the sales operation was helped by the marketing arm of US LNG exporter Cheniere Energy.

Growing natural gas production from the Vaca Muerta shale play in northwest Argentina will eventually meet all of the nation’s energy requirements and leave a surplus for export.

Argentina plans to deploy a floating liquefied natural gas production hull at the port of Bahia Blanca in the second quarter of 2019 under an agreement with Belgian shipping company Exmar and the Argentine oil and gas producer Yacimientos Petroleiferos Fiscales (YPF).