Exmar's FLNG Barge Still Idle

Belgian LNG shipowner Exmar says it is “still in dialogue with multiple entities for the commercial engagement of [its] Caribbean FLNG (CFLNG)  but no revenues are expected for the unit before 2H 2018.”

It said September 8 that its 1H 2017 operating results included a non-cash impairment of $22.5mn on LNG carrier Excel as well as costs related to the late delivery of the mini-liquefaction CFLNG.

Exmar reported a net 1H loss of $34.1mn, contrasting with a net profit of $33.7mn in 1H 2016.

Its LNG division lost $20.4mn in 1H 2017 (compared with an operational gain of $24.7mn in 1H 2016) even including a $8mn termination fee from Colombia gas producer Pacific Exploration and Production on CFLNG, which was finally delivered to Exmar on July 27 from the Chinese shipbuilder. 

The 0.5mn metric ton/yr CFLNG was expected to become the world's first floating liquefaction facility, but the Colombian producer underwent a financial restructuring last year and Exmar felt it had no alternative but to cancel its charter with it.

Mark Smedley