Excelerate And Gasgrid Sign 10-Year FSRU Charter Deal

U.S.-based LNG company Excelerate Energy and a subsidiary of Finnish state-owned company and transmission system operator Gasgrid Finland Oy have signed a ten-year contract to charter a floating storage and regasification vessel (FSRU) that will provide flexible, reliable, and secure liquefied natural gas (LNG) to Finland, Estonia, and the Baltic Sea Region.

Excelerate President and CEO Steven Kobos, Gasgrid Finland CEO Olli Sipilä, and Gasgrid Finland Chairman of the Board Kai-Petteri Purhonen signed the contract at the Government Palace in Helsinki in a ceremony also attended by Minister of Finance Annika Saarikko, Director-General for Energy Riku Huttunen, and U.S. Ambassador to Finland Douglas Hickey.

Under the time charter party agreement, Excelerate will deploy its FSRU Exemplar to provide regasification services in Southern Finland. The Exemplar has a storage capacity of 150,900 m3 of LNG and can provide more than 5 billion cubic meters per year of regasification capacity.

Per the cooperation agreement signed on May 4, 2022, by Gasgrid Finland and Estonia’s gas transmission operator Elering, the FSRU may be located in an Estonian port this winter if the port structures are not yet completed in Finland. The Governments of Finland and Estonia published a memorandum of understanding on April 29, 2022, agreeing to jointly lease an FSRU.

“Flexible access to LNG is a critical component of European energy security,” said Steven Kobos, President and Chief Executive Officer of Excelerate. “We are honored to collaborate with Gasgrid Finland to deliver essential energy infrastructure that will benefit Finland and more broadly the Baltic Sea region.  As a leader in flexible LNG solutions, Excelerate is proud to support the goals of the U.S.-EU Task Force for Energy Security, which include diversifying LNG supplies in alignment with climate objectives.”

“We are glad that we were able to sign the agreement on such a fast schedule. It required the committed contribution of dozens of top professionals, for which I am very grateful,” Olli Sipilä, CEO of Gasgrid said.

“The project requires seamless cooperation between different actors as well in the future, and the project is progressing as planned. Leasing an LNG terminal vessel is extremely important, as it ensures the security of supply for gas supplies in both Finland and Estonia. On the other hand, we see that there is a need for the terminal in the wider Baltic Sea region and it has been received with interest,” Sipilä stated.

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