Excelerate to deliver another spot LNG cargo to Bangladesh

US FSRU player Excelerate Energy has sold another spot liquefied natural gas cargo to Bangladesh, while it continues to advance negotiations with Petrobangla for its planned Payra LNG project.

Excelerate’s CEO Steven Kobos told analysts during the company’s first-quarter results conference call on Thursday that Excelerate was last week awarded its second LNG cargo this year.

He did not reveal any further information regarding the deal.

This follows the first cargo award Kobos announced during the company’s 2022 earnings conference call in March.

The company sold four spot LNG cargoes to Bangladesh in 2021, and all of these shipments were sourced from the US.

Bangladesh returned to buying spot LNG in February this year since a government decision in July 2022 to halt purchases due to high prices.

Spot prices dropped significantly when compared to the last year. The JKM LNG price for June settled at $11.160 per MMBtu on Thursday.

Bangladesh currently imports LNG via its first LNG import facility, Moheshkhali Floating LNG or MLNG, operated by Petrobangla, and via Summit Group’s FSRU-based terminal.

Both of these facilities feature Excelerate’s FSRUs.

Payra talks

In addition to these facilities, Excelerate is also working on another FSRU-based facility in Bangladesh.

The proposed scope of the Payra LNG project, which is located in the southwestern part of the country, involves the development of an offshore FSRU import terminal and an onshore pipeline to the city of Khulna.

As part of the project, Excelerate is also negotiating a long-term LNG supply agreement with Petrobangla.

“We are continuing to advance negotiations with Petrobangla for our planned Payra project. This includes discussions on the term sheet and a long-term SPA,” Kobos said during the call.

He said that the company also continues to advance financing options and evaluate potential equity partners.

According to Kobos, Excelerate has just recently signed a mandate letter with an international multilateral for a significant portion of the debt required for the project.

He did not elaborate further regarding this deal.

Cheif commercial officer Daniel Bustos said that “the demand for LNG in Bangladesh keeps growing and it’s actually exceeding the initial expectations.”

He said that the Bangladesh government has asked the company to “optimize the onshore route in order to access a larger market for the project potentially earlier on the time.”

Following the execution of the term sheet, Bustos said that the company expects to “have a much clearer picture” about a final investment decision (FID) on the project.

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