(Exmar, 28.Mar.2019) — Exmar announced its Tango FLNG will start its gas liquefaction operations in the second quarter of 2019, at which time a significant portion of the restricted cash under the financing of Tango FLNG will be released.
Tango FLNG in Bahia Blanca
The Tango Floating Liquefaction barge (Tango FLNG) arrived in Bahia Blanca Argentina on 4 February 2019. The Tango FLNG is already installed and safely moored in Bahia Blanca, Argentina, only two-and-a-half months after contract signing. The installation and commissioning of the unit has started on arrival and EXMAR’s management remains comfortable that the unit will be able to start its gas liquefaction operations in the second quarter of 2019 at which time a significant portion of the restricted cash under the financing of Tango FLNG will be released. The yearly production of about 500,000 tons LNG will account for an estimated annual EBITDA of $43 million per year with a potential upside depending on the market environment and the actual production of the unit.
Agreement With Bank Of China
Exmar reached an agreement in principle with Bank of China, financing Tango FLNG under a Loan Facility, to partially release cash currently trapped in a Debt Service Reserve Account to secure the Loan Facility. Following the execution of this agreement in principle, approximately $40 million restricted cash is expected to become available in May 2019 (ie after the collection of the first hire payment from YPF is expected) and an additional $13 million of restricted cash is expected to become available after one year of operations of Tango FLNG. The documentation is being prepared and will be executed once the final approval of the China Export and Credit Insurance Corporation, Sinosure has been obtained
***