LNG

Tree Energy Solutions (TES), the future energy hub developer at the German North Sea port of Wilhelmshaven, said regulators had exempted the planned onshore liquefied natural gas terminal within the “Green Energy Hub” from tariff and third-party access regulations for a period of 20 years from the start of operations.

Excelerate Energy, the leading US provider of floating storage and regasification units (FSRUs) with increased demand from Europe and South America, reported higher net income from natural gas sales in Brazil and Finland and German charter income.

E.ON, Europe's biggest operator of energy networks and with plans to enter the LNG import business in September with a floating storage and regasification unit delivered to the North Sea port of Wilhelmshaven, reported an increase in annual net income while also writing off its Nord Stream gas pipeline stake.

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 floating LNG import terminal specialist, signed a five-year charter agreement in Berlin with the German Government for the floating storage and regasification unit (FSRU) “Excelsior”.

The German government has selected a consortium to jointly develop and deploy a fifth floating import facility offshore the leading European Union economy for liquefied natural gas to replace Russian pipeline gas volumes.

One of the companies involved in the German North Sea liquefied natural gas import project at Wilhelmshaven has announced an open season to fast-track LNG imports into Germany and the European Union.

German utility E.ON has formed a partnership with Belgian start-up Tree Energy Solutions (TES) to develop the North Sea facility and TES has announced the open season to gauge interest.

The Wilhelmshaven plan revolves around the construction of a new “green gas” terminal at the port which will initially accept shipments of mainly LNG to help reduce Germany’s reliance on Russian pipeline gas before a “green hydrogen” solution is safely developed by 2030 or later.

E.ON has signed a memorandum of understanding with Australian billionaire Andrew Forrest’s Fortescue Future Industries to import to Europe up to five million tonnes of “green hydrogen” from Australia or other locations by 2030.

Until then the North Sea facility will have to make do with LNG and TES has asked for LNG regasification capacities, shipment offers or other ideas in the consultation.

“The open season is accessible to all parties seeking to import LNG in the drive to reduce EU and Germany energy dependence on Russia,” said a statement.

Expressions of interest

“Parties are invited to submit an expression of interest to reserve capacity and services for the import of LNG volumes,” it added.

TES is planning for initial capacity to import up to 16-20 billion cubic metres per annum of natural gas from 2025 onwards.

The terminal will be connected through a pipeline to the European high-pressure gas grid.

“Terminal and pipeline capacity may be further expanded through the integration of further LNG tanks and commissioning of a second export pipeline,” it added.

“The expansion's timing and size will be determined by market demand for LNG imports from 2025 onwards, as well as the planned transition to green and clean, hydrogen-based gas,” it explained.

“To help decarbonise Germany and neighbouring markets, from 2027-2028 onwards, the Wilhelmshaven regasification terminal will, as part of the Wilhelmshaven Green Energy Hub, increasingly be reserved for imports of fossil-free green gas.,” it stated.

Six berths

According to the developers, the Wilhelmshaven terminal layout will ultimately comprise six ship berths, 1,600,000 cubic metres of onshore storage capacity using eight onsite tanks, of which four will be available during the initial stage.

The terminal also has plans to offer direct access to an extensive gas pipeline network, including existing salt caverns at Etzel and proximity to the Dutch Groningen gas grid infrastructure.

“The TES-Wilhelmshaven project is unique in accelerating Germany’s and Europe’s plans to decarbonise the energy market at scale whilst creating the opportunity to shift away from Russian gas imports as the way out of the current energy crisis,” said Otto Waterlander, Chief Commercial Officer at TES.

“The open season makes it possible to materially meet the needs of the market and will help provide energy security for Germany and the rest of Europe by accelerating the growth of green gas imports,” he added.