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Excelerate revealed these developments in its third-quarter results report.
In the third quarter, Excelerate signed medium-term agreements for LNG purchases and sales in “one of the Atlantic Basin regions in which we do business,” the company said.
“In the aggregate over the terms of these agreements, we will purchase and sell approximately 0.65 million tonnes of LNG, the pricing of which will be based on a major European natural gas index,” Excelerate said.
Excelerate expects that, under these agreements, the first purchase will be made during the fourth quarter of 2024.
The company did not provide further details regarding these deals.
Excelerate previously signed two long-term LNG SPAs with QatarEnergy and Venture Global LNG.
Under the SPA with QatarEnergy, Excelerate will buy up to one mtpa of LNG to be delivered to FSRUs in Bangladesh for 15 years starting in January 2026.
Moreover, under the 20-year SPA with Venture Global, Excelerate will buy 0.7 million tonnes per annum of LNG on a free on board (FOB) basis from the Plaquemines LNG facility in Plaquemines Parish, Louisiana.
Exclerate said in its third-quarter presentation that the company’s diversified LNG portfolio “supports the development of commercial opportunities in our pipeline and allows us to connect our markets with reliable and affordable LNG supply.”
According to Excelerate, the company has about 2 million tonnes per annum under contract.
FSRU conversions, LNG carrier purchase
In May, Excelerate revealed a list of 12 prioritized regasification projects saying that a number of these projects will require new FSRUs.
Excelerate said 10 of the projects have a price tag between $50 million and $400 million, while two projects have CapEx greater than this range.
The firm recently revealed more details regarding some of the projects from this list, including the Northern Vietnam LNG terminal and the Alaska FSRU terminal.
Excelerate and PetroVietnam Technical Services Corporation (PTSC), a unit of state-owned PetroVietnam, recently also signed a strategic partnership agreement to jointly study FSRU-based technical solutions for LNG imports into Vietnam.
The company said in its third-quarter presentation that “several projects in our pipeline require a smaller send-out vessel and would be ideal for an FSRU conversion.”
Excelerate is currently “analyzing LNG carrier candidates and cost-efficient conversion options for our integrated terminal projects.”
The company also said it is evaluating a potential LNG carrier acquisition in 2025.
“In the near-term, an LNG carrier would support deliveries of LNG volumes in our portfolio,” Excelerate said.
Excelerate operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located worldwide.
Some FSRUs are located in Finland, Brazil, Dubai, Pakistan, while one FSRU will also start serving the second FSRU-based LNG import terminal in Germany’s Wilhelmshaven later this year.
In addition to these 10 FSRUs, Excelerate also ordered one 174,000-cbm FSRU at South Korea’s HD Hyundai Heavy Industries in 2022.
It will pay about $332 million for the vessel, and the FSRU is scheduled for delivery in June 2026.
HD Hyundai Heavy recently held a steel-cutting ceremony for this unit.
Results
Excelaeraete reported net income of $45.5 million and adjusted Ebitda of $92.3 million for the third quarter.
The company raised and narrowed full-year 2024 adjusted Ebitda guidance, now expected to range between $335 million and $345 million.
Excelerate declared a quarterly cash dividend of $0.06 per share, or $0.24 per share on an annualized basis, representing a 140 percent increase from the prior quarter.