Caribbean FLNG on Track for Delivery in Q1, 2016

The construction of the floating liquefaction unit Caribbean FLNG, the world’s first floating LNG production unit, at Wison Heavy Industry in Nantong, China is on track and the vessel is expected to be delivered in the first quarter of 2016, according to Exmar N.V., a Belgian shipping firm specialized in the transport of gas.

The unit comprises a non-propelled barge that will be operated off the Caribbean coast of Colombia for Pacific Rubiales Energy and equipped to convert 72.0 million scf/d of natural gas into LNG (+/- 500,000 tons of LNG per annum) for temporary storage and export.

DC LNG consortium expects to receive the facility permit for the 555,000 tonnes per annum export project by the end of the year. The consortium will be in a position to take positive Final Investment Decision once the import duty of the FLNG barge into Canada and other pending items are resolved to its satisfaction, Exmar said.

Exmar added that the FSRU, also under construction at Wison reached the important milestone of keel-laying and will be delivered by end the of 2016, as planned.

The company said in its reviewed third quarter results that the LPG market remains strong, which is expected to continue.

Exmar’s turnover year-to-date amounts USD 85 million, a decline from USD 110 million reported in the same period last year. Consolidated result after taxation amounts to USD 31.5 million, cut by a over a half when compared to last year’s USD 75.7 million.

EBIT for the first 9 months of 2015 under proportionate consolidation amounts to USD 49.7 million compared to USD 85.5 million for the same period last year, which was positively impacted by USD 33.6 million capital gain on the sale of assets.

The operating result (EBIT) of the LPG fleet in the third quarter was USD 9.1 million, compared to USD 15.6 million for the same period in 2014 where the result was positively impacted by the sale of the Flanders Harmony, which generated a capital gain of approximately USD 9.2 million for EXMAR’s share in EXMAR LPG.

In terms of VLGCs, Exmar said that the third quarter of the year started with Baltic Gas Index at among its highest levels ever. Despite weakening freights since then, VLGC rates remain historically very firm. 28 newbuildings were delivered so far during 2015 and 8 more are still expected by the end of the year.

“However, growing export volumes, primarily ex USA, combined with substantial vessel capacity serving Indian requirements and long-haul trading into Far East continue to support high vessel utilization and prospects remain strong,” the company adds.