8 FRSU’s cancelled at DMSE by Excelerate Energy

DAEWOO Shipbuilding & Marine Engineering has failed to finalise a deal that could have been worth more than $2bn to build up to eight floating storage and regasification units for Excelerate Energy.

According to statements from the Seoul-listed yard, the two sides failed to agree terms and conditions after negotiating for more than two years and have now ended those talks.

This deals another blow to the South Korean giant’s earnings potential, though the impact will not appear on its balance sheet as it had not recorded the deal.

In August 2012, US-based Excelerate Energy said it would build the FSRUs, each with storage capacity of 173,400 cu m, to meet charter demand from Petrobras.

The new units were supposed to be modelled on an Excelerate FSRU that DSME built for nearly $300m, suggesting that the deal could be worth more than $2bn.

DSME, which failed to win any offshore plant orders during the first eight months of this year, declined to comment on why it failed to close the deal.

Excelerate Energy had yet to answer an email request for more comment at the time of going to press.

The company has nine FSRUs, all built by DSME and managed by Exmar.

8 FRSU’s cancelled at DMSE by Excelerate Energy

DAEWOO Shipbuilding & Marine Engineering has failed to finalise a deal that could have been worth more than $2bn to build up to eight floating storage and regasification units for Excelerate Energy.

According to statements from the Seoul-listed yard, the two sides failed to agree terms and conditions after negotiating for more than two years and have now ended those talks.

This deals another blow to the South Korean giant’s earnings potential, though the impact will not appear on its balance sheet as it had not recorded the deal.

In August 2012, US-based Excelerate Energy said it would build the FSRUs, each with storage capacity of 173,400 cu m, to meet charter demand from Petrobras.

The new units were supposed to be modelled on an Excelerate FSRU that DSME built for nearly $300m, suggesting that the deal could be worth more than $2bn.

DSME, which failed to win any offshore plant orders during the first eight months of this year, declined to comment on why it failed to close the deal.

Excelerate Energy had yet to answer an email request for more comment at the time of going to press.

The company has nine FSRUs, all built by DSME and managed by Exmar.