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Excelerate Energy, Inc. has signed a long-term sale and purchase agreement (SPA) with the Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) to supply liquefied natural gas (LNG) for 15 years beginning January 2026.
Under the SPA, Excelerate will deliver 0.85 million metric tons per annum (mtpa) of LNG in 2026 and 2027, and 1 mtpa from 2028 to 2040, the company said in a news release Wednesday.
“Bangladesh is one of the most dynamic LNG markets in the world, and Excelerate has been a key player since the country began importing LNG”, Excelerate President and CEO Steven Kobos said. “Natural gas is important to Bangladesh’s economy, and we look forward to partnering with Petrobangla to help the country meet its rapidly growing energy needs”.
“Long-term LNG offtake agreements like this SPA are an essential part of our integrated growth strategy. Our ability to secure long-term SPAs is expected to result in ratable economic uplift on our existing infrastructure and meaningful value creation for our shareholders”, Kobos added.
According to Excelerate, the long-term SPA represents the next phase of its plan to integrate its business in Bangladesh. Excelerate first opened the Bangladesh market to LNG in 2018 with the development of its integrated Moheshkhali LNG floating storage and regasification unit (FSRU) terminal. The company deployed a second FSRU terminal in the Bay of Bengal and has used its infrastructure position to win spot LNG cargo sales into Bangladesh. Today, Excelerate’s two FSRUs in Bangladesh deliver approximately 25 percent of the country’s natural gas supply, the release said.
Petrobras Regasification Contract
Meanwhile, Excelerate and Petróleo Brasileiro S.A. (Petrobras) signed a ten-year contract for the charter of FSRU Sequoia. Under the agreement, which will begin on January 1, 2024, Excelerate will continue to deploy the Sequoia to provide regasification services in Brazil, primarily at the Bahia Regasification Terminal in Salvador, Bahia, the company said in an earlier news release.
“Brazil is an excellent market. This agreement is an important step in furthering Excelerate’s long-term sustainable growth plan in South America”, Kobos remarked. “Deploying the Sequoia for 10 more years will position Excelerate well to support Brazil’s efforts to strengthen its energy security. We have been a reliable partner to Petrobras for more than a decade, and we are committed to maintaining that partnership and supporting the energy transition for all Brazilians”.
Excelerate has been providing regasification services in Brazil at Petrobras’ LNG import terminals since 2012, according to the release. Aside from the Sequoia, the company’s FSRU Experience also provides regasification services in the country. The deal expands its core regasification business, “which allows for increased visibility to predictable near-term and long-term earnings and cash flows”, Excelerate said, adding that its presence in Brazil is a “fundamental part” of its strategic position.
Third Quarter Earnings
In a separate earnings release, Excelerate reported net income of $46.5 million for the third quarter, compared to $37.3 million in the prior-year period, which the company attributed primarily to higher rates on charters in Finland, Argentina, Brazil, and Germany, and lower operating lease expense resulting from the acquisition of the FSRU Sequoia in 2023.
“The robust earnings we delivered in the third quarter are a testament to the quality of our contract portfolio and the growing demand for FSRUs around the world”, Kobos said. “With over $4 billion of predictable future contracted FSRU and Terminal Service cash flows, our financial position is stronger than ever”.
“Continued geopolitical instability has underscored the importance of global energy security”, Kobos continued. “The need for flexible LNG infrastructure and the essential services that Excelerate provides has never been greater. We take great pride in being a reliable provider of flexible LNG terminals and a preferred partner for countries seeking strategic energy solutions. Looking ahead, we will continue to deploy our assets to bolster energy security and advance the decarbonization initiatives for customers across our global footprint”.
Excelerate, based in The Woodlands, Texas, provides integrated services along the LNG value chain to deliver rapid-to-market and reliable LNG solutions to customers. The company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply.
To contact the author, email rocky.teodoro@rigzone.com
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