Exmar, Flex LNG and Geveran scrap deal to form $2.3bn LNG company

Exmar, Flex LNG and Geveran Trading have scrapped a previously announced deal to form a $2.3bn LNG company after they failed to agree on the terms that were negotiated earlier.

On 1 July, Exmar and Geveran Trading had agreed for a transaction whereby Exmar's LNG and liquefied natural gas infrastructure assets and two LNG vessels of Geveran which are under construction would be merged with Flex.

The new company would have been known as Exmar LNG following the transaction and upon completion it will own interests mainly in six LNG carriers, five FSRUs, two FLNGs.

As per the deal, Exmar had agreed to transfer its assets to Flex LNG, controlled by John Fredriksen and take 323.7 million new shares in the company.

Following the completion of the deal, Exmar would have a 64.6% stake in the company while Geveran Trading would have a 30.7% stake. Flex already owns two LNG assets that are under construction.

Exmar said it will continue focusing on LNG infrastructure and pursue its strategy of floating liquefaction units (FLNG) and floating storage and regasification units (FSRU) projects that are barge-based.

The company will also own interest in total of 80 years of combined firm time charters and a total of five different exclusivity agreements in FLNG and four different exclusivity agreements in FSRU.

At that time Exmar chief executive officer Nicolas Saverys said: "This new venture will enable us to create shareholders' value for the long term and will allow us to continue to grow in all segments of the LNG value chain."

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