Excelerate Energy extends time charter agreement for Dubai FSRU located at Jebel Ali port since 2015
Excelerate Energy, the leading US provider of floating LNG import terminals, has extended a time-charter agreement with the Dubai Supply Authority for a floating storage and regasification unit deployed in the United Arab Emirates.
Excelerate said that prior to the deal the agreement for the FSRU “Explorer” had a remaining firm charter period of around three years.
Under the terms of the new agreement, the charter period will be extended by an additional five years from the end of the existing contract in the fourth quarter of 2025.
“Reaching an agreement on the extension of our time-charter agreement with DUSUP highlights our ongoing efforts to develop and grow our existing, diversified regasification business,” said Daniel Bustos, Chief Commercial Officer of Excelerate.
Revenues foundation
“Our current markets are essential to maintaining our solid foundation of revenues and providing new opportunities for downstream growth,” he added.
“We look forward to continuing our partnership with DUSUP and remain committed to providing Dubai with the critical energy security it needs,” stated Bustos.
FSRUs are a preferred option for Middle East nations and there are other floating terminals currently in operation in Kuwait, Jordan and Israel.
Bahrain and Egypt also have the onshore and offshore infrastructure for FSRUs though have no new charter agreements in place.
The FSRU “Explorer” was chartered initially to Dubai in 2015 to complement existing supply sources and support the Emirate of Dubai's seasonal demand requirements.
The vessel is located at DUSUP's Jebel Ali port and has become an important part of Dubai's integrated supply infrastructure.
The UAE entered into its first long-term charter agreement with Excelerate in 2014 for a larger and more efficient FSRU to replace an existing regasification vessel.
Under that agreement, Excelerate customized the “Explorer” in 2015 to meet the DUSUP's higher supply requirements.
Excelerate had enhanced the vessel with the newest features including new high-pressure vaporizers and pumps installed to increase regasification send-out capacity from 690 million cubic feet per day to 1 billion cubic feet per day.
