US-listed Excelerate Energy is closing in on opportunities to expand its fleet of floating storage and regasification units by looking at conversion options and is also considering buying an LNG carrier to deliver its own volumes.
In its third-quarter results presentation, the company said it has several projects in the pipeline that require smaller send-out vessels. It said these would be “ideal” for an LNG carrier-to-FSRU conversion.
Excelerate said it is “currently analysing LNG carrier candidates and cost-efficient conversion options for our integrated terminal projects”.
The outfit detailed that the company is “evaluating a potential LNG carrier acquisition in 2025”.
Excelerate said that in the near term, an LNG carrier would support the delivery of volumes in its portfolio.
It currently controls 11 FSRUs, one of which is under construction and scheduled for delivery in 2026.
The company has also built up a portfolio of up to 2 mtpa of LNG, half of which it is buying from QatarEnergy to sell to Petrobangla in Bangladesh starting in 2026. The remainder is from US liquefaction developer Venture Global LNG, beginning in 2027.
Excelerate said that in the third quarter, it signed medium-term agreements for LNG purchases and sales in an Atlantic Basin region, under which it will purchase and sell approximately 650,000 tonnes of LNG, with pricing tied to a major European natural gas index.
“We expect that, under these agreements, the first purchase will be made during the fourth quarter of 2024,” the outfit said.
The company has flagged up two FSRU-based projects it is pursuing in Vietnam and Alaska, along with several others it is targeting globally.
Excelerate said that in September it signed a strategic partnership agreement with oil and gas services provider PetroVietnam Technical Services Corp to study jointly FSRU-based technical solutions for LNG imports into Vietnam.
Excelerate’s third-quarter net income slipped slightly to $45.5m, down from $46.5m in the same three months of 2023.
The company said the drop was primarily due to the transition of the 173,467-cbm FSRU Excelerate Sequoia (built 2020) to a time-charter agreement in the first quarter of 2024, increased business development costs and a decrease in other gas sales opportunities. It said this was partially offset by higher interest income.
Excelerate’s third-quarter revenue fell to $193.4m from $275.5m in the same period a year earlier.
The company revised its full-year adjusted Ebitda guidance, raising and narrowing the range to $335m to $345m.
President and chief executive Steven Kobos said: “Excelerate delivered another quarter of solid financial and operational performance.
“Our core regasification business provides us with the financial foundation necessary to execute our growth strategy.
“As a US LNG company with a global presence, we are focused on expanding our reach in both new and existing markets around the world,” he said.
