Delivery of Exmar’s Caribbean FLNG pushed back

Image courtesy of Exmar

Belgium’s Exmar, the Nicolas Savery-led shipowner said Thursday it now expects to take delivery of its Caribbean FLNG in May.

The FLNG unit is currently located at the Wison Offshore & Marine’s yard in Nantong, China.

“Financing of the Caribbean FLNG and final delivery of the unit still remains subject to the approval of the local authorities in the People’s Republic of China, which is expected to be received in the course of May 2017,” Exmar said in its first-quarter results.

To remind, the company said in March it would take delivery of the FLNG by the end of this month at which time the last instalment of $200.5 million was due to the Wison yard.

The 0.5 mtpa FLNG unit, with a 16,100-cbm storage capacity, was scheduled for delivery to Pacific Exploration and Production in 2015, however, in March last year, the agreement was terminated.

Exmar is still in talks to secure an employment for the FLNG. “Progress has been made on the future employment of the Caribbean FLNG and future communication on this is expected in the coming months,” the company said.

Exmar added that it is currently pursuing several other FSRU and FLNG projects around the world for which it expects a positive outcome in the coming months.

LNG numbers down

The Antwerp-based company said Earnings Before Interest & Tax (EBIT) for its LNG division dropped year-on-year.

The EBIT for the LNG and LNG Infrastructure division in the first quarter of 2017 was $5 million compared to $13.3 million the year before.

The first-quarter EBIT included a $5 million termination fee from PEP on the Caribbean FLNG.

According to Exmar, the results of its LNG division were negatively impacted by the lack of employment of the 138,107-cbm Excel LNG tanker for the first quarter of the year.

The vessel started a 3-month time-charter at the end of March with extension options until the end of the year and in line with the current market rates, Exmar said.


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