LNG

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.

Abu Dhabi National Oil Co (Adnoc), the owner of the Das Island LNG export plant in the United Arab Emirates, said its logistics arm had signed a contract with a Chinese shipyard for two newbuild LNG carriers.

Adnoc Logistics and Services (Adnoc L&S) said the two vessels with 175,000 cubic metres capacity would join the existing fleet in 2025.

“The purchase, part of the company’s broader growth and expansion strategy, further reinforces its position as the UAE’s leading shipping and maritime operator,” said Adnoc L&S.

“The new LNG vessels will be crucial enablers of Adnoc’s 2030 growth strategy, supporting its existing LNG business as well as its ambitions to grow its LNG production capacity,” the company explained.

The two carriers will be built at the Jiangnan Shipyard, located northeast of Shanghai on Changxing Island at the mouth of the Yangtze River.

Adnoc L&S has the largest and most diversified fleet of vessels within the Middle East and its trading fleet transports crude oil, refined products, dry bulk, containerised cargo, liquefied petroleum gas and LNG to global markets through its owned and chartered vessels.

Growth strategy

“The expansion and modernisation of our LNG fleet will be a key enabler of Adnoc L&S’ growth strategy. This acquisition helps future-proof our fleet with more sustainable, modern vessels capable of serving our customers for the next 25 years and deepens our partnership with Jiangnan Shipyard,” explained Captain Abdulkareem Al Masabi, Chief Executive of Adnoc L&S.

Adnoc L&S currently has eight LNG carriers among its fleet of over 40 vessels.

The newbuild LNG vessels are significantly larger than the current Adnoc L&S fleet of LNG ship which each have a capacity of 137,000 cubic metres.

Lin Ou, Chairman of Jiangnan Shipyard, said the yard was proud to continue its relationship with Adnoc L&S.

“This order for large LNG carriers is another milestone in the strategic portfolio of Jiangnan shipyard. We are committed to delivering these vessels on time, with good quality and ensuring the highest possible customer satisfaction,” stated Lin.

The Das Island LNG plant produces about 6 million tonnes per annum of LNG and came on stream in 1977 as the first liquefaction and production facility in the Arabian Gulf.

The plant is 70 percent owned by Adnoc and the other shareholders are Japan’s Mitsui & Co with 15 percent, UK major BP with 10 percent and TotalEnergies with 5 percent.

The Abu Dhabi National Oil Company’s LNG subsidiary has awarded the front-end engineering and design contract for the rejuvenation of two liquefaction Trains at the Das Island export plant in the Arab Gulf to Australian firm Worley Engineering Pty. Ltd.

KBR, the US engineering and LNG contractor, was awarded a major project management consultancy services contract for the Ghasha portfolio of gas projects by Abu Dhabi National Oil Company in the United Arab Emirates, the oldest LNG producer in the Middle East.

Freeport LNG in Texas is shipping its first cargo to the Middle East in a move underscoring the benefits of the US shale boom that has boosted the nation's resources since the facility on Quintana Island was first conceived as an import terminal in 2004.

The Kingdom of Bahrain said it would receive its commissioning cargo from Abu Dhabi National Oil Company when the facility becomes operational in 2019.

Abu Dhabi National Oil Company (Adnoc), the leading energy group in the United Arab Emirates, has issued a plan of action for its recently discovered 15 trillion cubic feet of natural gas and substantial additional oil reserves while preparing to award new exploration licences early in 2019.

Bahrain has completed the construction of the jetty and offshore sections of its first LNG import facility at a location about 5 kilometres from the existing breakwater at the Khalifa Bin Salman Port and the terminal is on schedule for completion in 2019.