In a statement, the Jordanian Ministry of Energy and Mineral Resources said Excelerate Energy placed second in the race to provide a 3.5-million-tonne-per-annum (mtpa) capacity FSRU that will be based in the Red Sea port of Aqaba.
Mawan Bakain, the director of the ministry’s natural gas department, noted that he and his counterparts intend to enter into negotiations shortly and hopes pen will meet paper by the end of March.
If all goes according to plan and the Nasdaq-listed company secures the win, which isn’t guaranteed until the contracts are signed, Michael Webber of Wells Fargo Securities says the development would be “positive for shareholders”.
In a note to clients the equity analyst pointed out that the project would likely fuel predictable, long-term cash flow streams while setting the stage for another dropdown deal with affiliate Golar LNG Partners.
“Golar LNG remains one of our top picks, as we believe its moves towards regasification and liquefaction, and the associated cash flows, are significantly undervalued by the market,” Webber added.
As TradeWinds has reported, Jordan is trying to diversify its energy suppliers after running into problems with Egyptian pipeline volumes. Qatar is believed to be among the top candidates competing for a contact to supply the new terminal.
