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 its pipeline that require smaller send-out vessels. It said these would be “ideal” for an LNG carrier-to-FSRU conversion.
Excelerate said its 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”.
The company said that in the near term, an LNG carrier would support the delivery of volumes in its portfolio.
Excelerate 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 million tonnes per annum of LNG, half of which it is buying from QatarEnergy to sell to Petrobangla in Bangladesh starting in 2026. The remainder 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 one of the Atlantic Basin regions under which it will purchase and sell approximately 650,000 tonnes of LNG, the pricing of which will be based on 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 that it is pursuing in Vietnam and Alaska, amongst several that it is chasing globally.
Excelerate said that in September Excelerate signed a strategic partnership agreement with oil and gas services provider PetroVietnam Technical Services Corporation 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 fall 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 2024 revenue fell to $193.4m from $275.5m in the same period a year earlier.
The company raised and narrowed its full year adjusted EBITDA guidance 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.” Kobos continued, “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.”
