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In May, Excelerate has 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, one of which is planned Payra development in Bangladesh.
The firm revealed more details regarding two projects from this list in its second-quarter results report.
Northern Vietnam LNG terminal
In June, Excelerate signed a term sheet with ITECO, a Vietnamese-based private development company, to co-develop a greenfield onshore LNG import terminal in Haiphong, Vietnam.
The northern Vietnam LNG terminal (NVLT) is anticipated to have a total import capacity of 1.2 million tonnes per annum, constructed in two phases, according to Exclerate.
Phase one of the terminal is expected to have a capacity of 0.7 mpta, while operations are expected to start in 2027.
Also, Excelerate would hold exclusive rights to supply LNG to the terminal and be considered for the O&M provider contract.
The US firm is in talks with an anchor customer for the initial 0.7 mtpa.
Excelerate said the development of the project is subject to execution of definitive agreements, regulatory approvals, and also the satisfaction of other conditions.
According to Excelerate, this would be the first terminal in northern Vietnam.
Vietnam has one of the fastest growing economies in Asia and as domestic natural gas production declines, industrial complexes in the north provide a foundation of customers with a need for LNG to play a “pivotal role” in their energy mix, Excelerate said.
Alaska FSRU terminal
Besides the facility in Vietnam, Excelerate is in “advanced discussions” with local utilities in Southcentral Alaska to develop an integrated LNG import terminal in the lower Cook Inlet region.
Excelerate said recent declines in local gas production have led to “critical” shortages in Southcentral Alaska.
The proposed solution for an integrated LNG terminal would help augment declining domestic reserves and provide southern Alaska with greater energy security through LNG imports, Exclerate said.
Moreover, this would be an FSRU-based terminal and Excelerate is expected to own the facility and be responsible for LNG and sell gas to local utilities.
The company is expected to have exclusive ownership of all regas capacity, while gas sales agreements are expected to have an infrastructure payment component as a take-or-pay obligation, it said.
Excelerate did not reveal the proposed capacity of this development.
It targets commercial start date in 2028.
Large FSRU fleet
Excelerate operates ten FSRUs, one of the world’s largest fleets of such vessels, and these units are located around the globe.
Some of the 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 Hyundai Heavy Industries in 2022. It will pay about $332 million for the vessel.
Exclerate said in the report that engineering and fabrication on the new FSRU are underway, and steel-cutting is set for October.
The FSRU is scheduled for delivery in June 2026.
According to the firm, several projects in its prioritized pipeline are an “ideal fit” for this FSRU.
In addition to vessels, Excelerate also has signed LNG SPAs.
In January, the company signed a 15-year LNG SPA with QatarEnergy to buy to one million tons per annum of LNG from the latter for delivery to FSRUs in Bangladesh, starting in January 2026.
Excelerate Energy signed in November last year a 15-year LNG supply deal with Bangladesh’s state-owned Petrobangla.
Besides this QatarEnergy deal, Excelerate also signed last year a 20-year SPA with compatriot Venture Global LNG to 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.
Results
Excelerate reported net income of $33.3 million for the second quarter and adjusted Ebitda of $89 million.
Net Income and Adjusted Ebitda for the second quarter of 2024 increased sequentially from last quarter primarily due to the drydocking of the FSRU Summit LNG which was incurred and expensed in the first quarter of 2024, it said.
Net Income and Adjusted Ebitda for the second quarter of 2024 increased from the prior year second quarter.
This is primarily due to the impact of various charter rate increases executed during 2023 and increased interest income, partially offset by a decrease in Brazil gas sales as the FSRU Sequoia transitioned to a time charter party agreement in Brazil, Excelerate said.
The company declared a quarterly dividend of $0.025 per share, payable on September 5.
