Excelerate Energy has provided a much needed vote of confidence to Korean shipbuilding major, Daewoo Shipbuildng & Marine Engineering (DSME), signing a letter of intent for one firm and six options of 173,400 cu m floating storage and regasification units (FSRUs) worth around $1.6bn.
The first firm order is likely in the next quarter. Excelerate said the LOI gives it the ability to respond to increasing market demand for natural gas as its existing fleet of nine FSRUs become committed to long-term projects.
“Excelerate Energy is very pleased to continue its longstanding relationship with DSME in building the industry’s leading FSRUs. These vessels have been proven in long-term service as safe, efficient and reliable components of our comprehensive suite of LNG import solutions,” stated Excelerate CEO Rob Bryngelson. “We believe this is the right time to move forward with DSME as we continue to provide LNG import solutions in a timely and efficient manner around the world.”
For DSME, which has been going through a state-backed workout over the past year, the order represents a significant chunk of its annual sales target. Lead creditor Korea Development Bank (KDB) anticipates DSME could rack up around $20bn worth of orders this year.