Exmar Still in Talks with Vopak

Belgian shipowner Exmar is continuing with plans to divest its share in its floating LNG storage and regasification (FSRUs) business to Dutch Vopak. 

Exmar disclosed an outline agreement with international oil and LNG terminals operator Vopak in December, subject to certain conditions being fulfilled and approvals obtained. Both firms are “working on implementation of this transaction [but ] timing of its closing is unclear,” it stated March 30.

Exmar also reported March 30 an overall post-tax net 2016 profit of $35.8mn, up from $11.2mn in 2015. Its LNG business operating earnings doubled to $41mn last year, buoyed by revenues from FSRUs in operation. But it was a disappointing year for its floating liquefaction (FLNG) business.

The Belgian firm finally received a $9mn termination fee from Colombian gas producer Pacific Rubiales, client of Exmar’s Caribbean FLNG project. The unit, being built by Chinese shipbuilder Wison, is due to be delivered to Exmar in April 2017 provided a $200.5mn payment is made then to Wison, to be financed by a Bank of China loan to Exmar. The latter expects no revenues from the unit before early 2018.

Exmar meanwhile has cancelled an order for a second FLNG unit at the same yard, but expects to take delivery of a FSRU barge being built by Wison in mid-2017. No client is yet finalised but Exmar said: “Three commercial leads are being actively developed which foresee mobilisation and commissioning on site after delivery from the yard.”

The FSRU Toscana, which is moored off Livorno in Italy (Photo credit: Exmar)

Exmar co-owns with US Excelerate two LNG carriers and four FSRUs, and manages two other LNG carriers and several more FSRUs including one moored offshore Livorno in northwest Italy.

It acknowledged one of its co-owned LNG carriers, Excel, is operated under a short-term contract no longer than a year "at today’s low market rates."

Mark Smedley