Excelerate Energy (EE) chief executive Steven Kobos said Wednesday the company is "fundamentally bullish" on the floating storage and regasification unit market, citing tight supply of new vessels and strong demand across global markets.
The remarks came during a presentation at Barclays' 40th Annual Energy-Power Conference. Excelerate, which holds 12 of roughly 50 FSRUs worldwide and five assets in the Atlantic Basin, is betting that limited newbuild capacity — with shipyards already quoting 2030 delivery slots — will support pricing and utilization through the end of the decade.
Global LNG supply is projected to rise approximately 50% by 2029–2030, according to management. That growth comes as few new FSRUs are expected to enter service, creating what Kobos called an opportunity for the company's downstream LNG positioning.
Kobos pointed to the company's acquisition of the Methane Patricia Camila as evidence. The vessel, previously owned by BG and Shell, was purchased for $79 million — with $8 million due within a month and $71 million at January delivery. All-in conversion costs are estimated at $230 million to $250 million, up from an earlier $200 million estimate. Kobos called it a "fantastic price" for a 170,000-cubic-meter TFDE ship and highlighted its reliquefaction capability, which he said could improve annual fuel economics by roughly $10 million.
On the project pipeline, Excelerate targets a Q2 2027 startup for its Iraq regasification facility. The project carries a minimum offtake commitment of 250 million cubic feet per day, with maximum capacity of 500 million cubic feet per day, leaving 30% to 40% upside headroom. Site cleanup has removed approximately 150 million tons of material, with logistics routed overland from Oman to Dubai and then by barge to Iraq. Baghdad has lacked reliable electricity since 2003, Kobos noted, and temperatures recently reached 117 degrees Fahrenheit.
In Jamaica, the company expects a full-year contribution from its platform in 2026. The facility integrates two import terminals and power generation, operating on a hub-and-spoke model that Kobos compared to an airline system, breaking bulk cargoes from Texas and Louisiana into smaller parcels for regional delivery. Kuwait LNG imports have declined 10% to 15% year-on-year since 2025.
Financially, Excelerate reported a leverage ratio of 1.9 times, $452 million in cash and a $500 million undrawn revolver, yielding approximately $952 million in total available liquidity. The company reaffirmed low double-digit dividend growth through 2028, following a recent 13% increase. Its market capitalization stands at $4.46 billion with a P/E ratio of 27, and current dividend yield sits at roughly 0.92%.
Smaller-scale opportunities in the Caribbean and Latin America, sized at $30 million to $50 million per facility, also present growth avenues, management said. In recontracting, the Express vessel achieved a 35% EBITDA uplift linked to a Colombia deployment from Cartagena.
Liquefaction remains significantly more capital-intensive than regasification — costing roughly 10 times more per million tons — yet final investment decisions have been made for more than 200 million tons of liquefaction capacity globally, adding further demand for floating regasification infrastructure.
