Excelerate Energy LLC is seeking a partner to market gas from its Gulf Gateway liquefied natural gas (LNG) terminal off the Louisiana Coast, the company’s chief commercial officer said.

Such a deal could be similar to one Excelerate struck last year with Barclays Capital for its Northeast Gateway terminal off the Massachusetts coast (see Daily GPI, Dec. 3, 2009), Andree Stracke told NGI. The investment banking division of Barclays Bank PLC will provide Excelerate with fixed-price hedging mechanisms. Additional services include taking physical delivery, transport and optimization of cargoes through profit-sharing by the parties.

“Excelerate will explore creative asset structures including capacity slots, regasification, options, swaps and discretionary dedicated shipping to maximize natural gas value within the strategic Atlantic basin,” the company said of the Gulf Gateway partnership it is seeking.

Stracke said Excelerate is just beginning discussions on a partner at Gulf Gateway, noting that the company will be short-listing contenders through June for a decision later in summer. Barclays will be considered, he said.

Gulf Gateway has been idle since Hurricane Ike damaged pipeline infrastructure used by the terminal in 2008. Stracke said some of that has now been repaired, but the terminal has not received a cargo since before the hurricane. Since its commissioning Gulf Gateway has received 10-15 cargoes, he said.

While Northeast Gateway offers higher netbacks than Gulf Gateway during the winter, by virtue of its proximity to the Northeast market, the Gulf terminal has the capability to take richer gas, making it more flexible, Stracke said. “Gulf Gateway can take every cargo produced in the world,” he said and added that Excelerate would like to expand the number of countries from which Gulf Gateway cargoes are sourced.

“Beyond traditional arbitrage, Gulf Gateway provides international gas marketers with incremental value from oil-based pricing derived from several [gas] processing facilities,” Excelerate said. “Furthermore, it provides unique on-ship floating storage as well as access to affordable high-turn salt-dome [storage].”

Since late last year Excelerate has seen the number of cargoes coming to Northeast Gateway skyrocket, mainly on the growth in global LNG supplies (see Daily GPI, March 25).

Earlier this month J.P. Morgan and Cheniere Energy Inc. struck a deal that gives the investment banking arm of JPMorgan Chase & Co. access to capacity at Cheniere’s Sabine Pass onshore LNG terminal in Louisiana as well as right of first refusal on deals for LNG cargoes presented to it by Cheniere (see Daily GPI, April 5).

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