Belgian shipmanagement firm Exmar is set to receive US$150M from Argentinian energy company YPF in a settlement for the cancelled charter for the floating liquefaction vessel Tango FLNG
An Exmar statement said that YPF has paid a first installment of US$22M. A further US$128M will be payed in monthly installments over the next 18 months backed by “adequate financial security,” according to the statement.
Exmar said this will enable it to secure a loan agreement for US$40M with Bank of China and Deutsche Bank related to the vessel.
In November 2018, YPF chartered Tango FLNG on a 10-year charter and the vessel was set to serve YPF in exporting gas reserves from Argentina’s Vaca Muerta field to the international market.
YPF estimated the vessel would generate about US$200M per year in revenues from LNG production when it was fully commissioned. The first cargo was exported in 2019.
In June 2020 YPF declared force majeure on the contract claiming the effects of the global pandemic both worldwide and in Argentina had hindered its ability to perform its obligations under the agreements.
Tango FLNG can produce 0.5 million tonnes per annum of LNG and is now available for other projects, and Exmar said it is actively pursuing commercial leads for new employment.
"The FLNG’s immediate availability, proven track record and operational experience are the right elements to rapidly unlock new markets for gas exports," the company said.
Exmar remains locked in arbitration with trader Gunvor over a charter deal for a small floating storage and regasification barge (FSRU) that was set for use in Bangladesh. However the nation’s state-owned oil corporation Petrobangla shelved plans for the Gunvor LNG project to focus on a larger LNG import terminal.
Get the latest information and viewpoints on maritime issues during Riviera Maritime Media’s series of webinar weeks on key technical subjects in shipping
© 2023 Riviera Maritime Media Ltd.