Pacific Rubiales and Gazprom Sign on EXMAR FLNG Project

EXMAR announced two keystone events in its Caribbean FLNG project.

On November 5, Pacific Rubiales Energy Corp. (PRE) and Gazprom Marketing & Trade Ltd. (GM&T) announced the execution of a heads of agreement with respect to a five year sale and purchase agreement covering approximately 500,000 tons per year of liquefied natural gas (LNG) FOB Colombia (Caribbean Sea) commencing commercial operations in the second quarter of 2015. This LNG cargo will be produced in, and loaded from, EXMAR’s Caribbean FLNG barge.

Last week, Wison Offshore & Marine Ltd. completed the installation of the three LNG storage tanks into the hull of the Caribbean FLNG barge, reaching a significant milestone in the construction of the world's first floating LNG production unit. With this major activity completed, the pathway is clear for installing the deck and topsides of the barge.

EXMAR’s CEO, Nicolas Saverys, stated, “The execution of a heads of agreement between our customer, PRE, and the major international gas company GM&T is an important step in the implementation of the project’s marketing strategy. Having a leading gas company like GM&T signing offtake from our Caribbean FLNG project is strong industry recognition of our barge-based FLNG strategy. Our project is progressing on schedule, and expected to be mechanically completed in April 2014, with ‘sail away’ in the fall of 2014 in order to be ready to start commercial operations in the second quarter of 2015.”

EXMAR also announced that, together with its joint venture partner Teekay LNG , it has declared options to build two additional Midsize LPG carriers at Hanjin Heavy Industries. These bring the total of newbuildings for EXMAR LPG BVBA to 12 vessels, four of which are currently being built at Hyundai MIPO and eight will be built at Hanjin. Delivery of these vessels will be between February 2014 and May 2018.

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