Hello, everyone. Thank you for joining us, and welcome to Excelerate Energy's Third Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference call over to Craig Hicks, Vice President, Investor Relations and Strategy. Craig, please go ahead.
Good morning, and thank you for joining Excelerate Energy's Third Quarter 2026 Earnings Call. Joining me today are Steven Kobos, President and CEO, and Dana Armstrong, Chief Financial Officer. Also joining the call are Oliver Simpson, Chief Commercial Officer, and David Liner, Chief Operating Officer. Our third quarter earnings press release and presentation were published yesterday afternoon and are available on our website at ir.excelerateenergy.com. Before we begin, please note that today's discussion will include forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially. We undertake no obligation to update these statements. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found at the end of the presentation. With that, it is my pleasure to pass the call over to Steven Kobos.
Thanks, Craig, and good morning to everyone joining us on the call today. Excelerate Energy is a global provider of critical last-mile energy infrastructure. No company in the world operates more floating LNG import terminals than we do today. Against a complex geopolitical and economic backdrop, I am extremely proud of what our team has been able to accomplish this year. Across our business, our teams have demonstrated tremendous commitment to our customers and continue to create new opportunities that position Excelerate for long-term growth. The significant wave of new LNG supply coming online over the next few years reinforces the need for reliable downstream infrastructure to connect that supply with growing demand. We believe this creates attractive opportunities for Excelerate, particularly in markets where access to natural gas remains constrained by infrastructure. I will begin today's call by highlighting our third quarter performance.
From there, I will provide updates on the Bahamas LNG hub, our vessel deployment plan for Iraq and Colombia, our new agreement with Petrobras, and our FSRU conversion project. Dana will then walk through our financial results and outlook in more detail. The third quarter was another period of strong financial performance and commercial progress for Excelerate. We delivered adjusted EBITDA of approximately $133 million. This is the highest quarterly result in our company's history. The strength of our financial performance reflects how we have built this business. Our earnings are predominantly supported by long-term take-or-pay contracts. Our business also continues to benefit from a diversified portfolio of infrastructure assets and commercial operations across multiple regions. The addition of the integrated platform in Jamaica last year expanded our business beyond floating regasification services, and we now operate an LNG and power infrastructure portfolio.
Looking ahead, our priority is clear: execute on the opportunities in front of us while continue to strengthen and expand Excelerate's global footprint. This morning, we announced an important milestone in Excelerate's growth strategy, the development of the Bahamas LNG Hub. This is our first integrated infrastructure opportunity in the Caribbean since acquiring the Jamaica platform. I'm particularly pleased with this announcement because it demonstrates what we set out to accomplish when we expanded our presence in the Caribbean. We saw an opportunity to build on our existing infrastructure and operating capabilities to serve a broader regional market. Today, we're taking an important step toward realizing that opportunity. At the center of this development is an 11-year LNG supply agreement with AxDo Bahamas Limited. This is a joint venture between Axpo, an international leader in energy trading and marketing, and Bahamas-based energy and maritime logistics company, Domicisle LNG.
Under the agreement, AxDo will become an anchor customer of our planned offshore LNG storage and distribution terminal near the island of Grand Bahama. LNG supplied through the hub will support marine bunkering, power generation, and other downstream customers. The supply agreement provides for deliveries ramping up to 16 TBtus of LNG per year, establishing long-term investment-grade offtake and a strong commercial foundation for the project. Beyond this contracted volume, we have additional capacity to grow our sales to AxDo and serve other customers throughout the region. We plan to develop the Bahamas LNG Hub in two phases. Initial LNG deliveries are expected to begin in the first quarter of 2027, utilizing the existing FSRU, LNG supply, and logistics capabilities of our Jamaica platform. This will allow us to begin serving AxDo and generate earnings ahead of deploying dedicated infrastructure in the Bahamas.
The second phase includes the planned deployment of a floating storage unit, or FSU, near the island of Grand Bahama in the second half of 2028. The FSU will serve as the offshore LNG storage and distribution terminal. We currently estimate the total capital investment in the FSU to range between $85 million to $95 million. This includes the cost for the LNG carrier and the cost of converting the vessel into the FSU. The final conversion costs remain subject to completion of engineering and finalization of the project scope. From an earnings perspective, we expect the AxDo deal to contribute approximately $6 million of EBITDA in 2027. After the FSU is deployed, this will increase to an average annual EBITDA run rate of approximately $15 million over the remaining 10 years, based upon current contracted volumes with AxDo.
Beyond that, we see potential for meaningful economic upside from additional sales to AxDo and other customers utilizing the terminal's available capacity. For Excelerate, this development represents more than a new commercial agreement. It is a critical component of our multi-phase Caribbean growth strategy. The Bahamas LNG Hub and our integrated Jamaica platform will give us two LNG storage and distribution hubs in the Caribbean. Together with our planned FSRU deployment in Colombia, they strengthen our position to serve growing LNG demand across the region. Turning to Iraq and Colombia, I'd like to clarify our vessel deployment plans for each of the projects. For the LNG import terminal in Iraq, we expect to utilize one of our FSRUs already positioned in the Arabian Gulf. For Colombia, we'll utilize other assets in our portfolio located outside the Gulf to serve that terminal in the near term.
Importantly, neither startup requires an FSRU to transit the Strait of Hormuz. This allows us to advance both projects without depending on vessel movements through the strait. It also allows us to prioritize the safety and security of our people and operations. We are working through the necessary arrangements with our customers, and given the commercial and security sensitivities involved, we do not intend to identify individual assets until those arrangements are finalized. These temporary arrangements will preserve both the near-term and the long-term earnings potential of both projects. We continue to target first quarter 2027 startup in Colombia and second quarter 2027 startup in Iraq. Specifically, as it relates to Iraq, critical materials needed for jetty reinforcement and construction of the fixed terminal infrastructure are arriving in country.
In addition, the construction workforce is on site, and we expect activity to ramp up over the coming weeks as work on the jetty and terminal facilities accelerates. This represents an important milestone as we advance construction toward commissioning and the start of operations. In parallel, we are advancing LNG supply agreements with a focus on intra-basin sources. LNG cargoes have continued moving within the Arabian Gulf, including deliveries to Kuwait, and we expect similar supply arrangements to support Iraq's requirements once the terminal enters service. We expect to finalize an LNG supply agreement with an upstream supplier in the first quarter of 2027. The project continues to receive strong support from the government of Iraq, which recognizes the importance of additional natural gas supply for the country's electricity generation needs.
Our five-year integrated agreement provides for a minimum contracted offtake of 250 million standard cubic feet per day, with the ability to increase volumes up to 500 million standard cubic feet per day. That provides a contracted earnings foundation with the potential for additional economic upside as Iraq's natural gas demand grows. We continue to create value across our infrastructure portfolio through targeted initiatives that enhance existing assets and expand our capacity for future growth. In August, we signed an agreement with Petrobras to extend the FSRU Sequoia contract by five years through 2038. This extension adds over $400 million contracted revenue to our backlog. As part of the agreement, we will install a reliquefaction unit on the Sequoia during its next scheduled dry dock in 2028. This technology will reduce LNG losses from boil-off, lower our Scope 1 emissions, and improve the vessel's operating efficiency.
The agreement also provides for a modest increase in contracted revenue beginning in 2028, generating incremental earnings ahead of the extension period. This is our second reliquefaction agreement with Petrobras. Last year, we entered into a similar arrangement for the FSRU Experience, with installation planned during its scheduled dry dock in the first quarter of 2027. These agreements demonstrate how targeted initiatives can improve asset performance, strengthen customer relationships, and generate additional contracted earnings from infrastructure already in service. We are applying that same focus on long-term value creation as we invest in additional FSRU capacity. In October, we awarded Seatrium the engineering, procurement, and construction contract to convert the Methane Patricia Camila, a 170,000 cubic meter LNG carrier, into an FSRU. Engineering activities began earlier this quarter, and the converted FSRU will be available for commercial deployment in 2028.
Following the award of the Seatrium contract, we now estimate the total investment in the FSRU conversion project to be approximately $260 million, including the cost of the vessel. We will continue to target investment returns consistent with the five to seven times build multiple range we have previously communicated. The timing of this project is deliberate. We expect a significant amount of new LNG supply to enter the market around 2028, which will create numerous opportunities for additional import infrastructure. With limited FSRU capacity available at that time, we believe our FSRU conversion will be well-positioned to pursue these opportunities. We have covered a lot of ground this morning, and I want to leave you with one important point. Excelerate's growth is not dependent on any single market or commercial opportunity.
We are building a broader, more diversified infrastructure platform supported by long-term customer relationships and investments designed to generate additional contracted earnings. Over the past several quarters, we have outlined our sequenced pathway to growth through Iraq, Colombia, Caribbean expansion, and the additional FSRU capacity. Progress on these projects is strengthening our visibility into future accretive earnings and positive operating cash flows as we continue to execute on our growth strategy. With that, I will turn the call over to Dana.
Thanks, Steven, and good morning, everyone. Excelerate delivered strong financial results in the third quarter. We reported net income of $60 million, an increase of $10 million from the second quarter. Adjusted EBITDA was roughly $133 million, an increase of $13 million sequentially. Our results benefited from the commencement of our new charter in Jordan and higher LNG gas and power direct margins across our portfolio. For the quarter, maintenance CapEx were $11 million, and committed growth CapEx were $29 million. Beyond the quarterly results, I want to highlight an important characteristic of our evolving business model. Our traditional FSRU operations provide a strong foundation of contracted earnings. As we expand our infrastructure portfolio, we have opportunities to integrate LNG supply and downstream distribution with the infrastructure we own and operate. This approach allows us to capture more of the economics around our assets and generate stronger returns.
Turning to our balance sheet, as of September 30th, we had roughly $1.2 billion of total debt, including finance leases, and $357 million of cash. We also had full availability of our $500 million revolving credit facility. Net debt was $871 million, and trailing net leverage was 1.8 times. This positions us well as we continue investing in our growth strategy. At the same time, we are mindful of the current interest rate environment. With our low leverage profile and recurring positive operating cash flows, we have sufficient financial capacity to advance our near-term growth priorities. We are being deliberate about where we invest, the returns we expect, and how we balance those opportunities with our capital needs. Our capital allocation priorities remain unchanged. First, we invest in attractive infrastructure projects that drive accretive growth. Second, we return capital to shareholders through a growing dividend.
And third, we pursue opportunistic share repurchases when market conditions warrant. Consistent with that framework, our board recently approved a quarterly cash dividend of $0.09 per share, payable on December 3, 2026, to shareholders of record as of November 18. As a reminder, we are targeting a low double-digit annual dividend growth rate through 2028, reflecting confidence in our ability to fund growth while returning capital to shareholders. Our healthy financial position and our disciplined approach to capital allocation will allow us to continue to fund our near-term growth initiatives while maintaining balance sheet strength. This provides us with a significant competitive advantage in today's market, and we expect to continue deploying growth capital in 2027 as we advance on our previously communicated infrastructure growth initiatives. As these capital projects are placed into service, they will support accretive returns and meaningful growth in operating cash flows.
To be clear, our stellar balance sheet today positions us exceptionally well to continue to execute on our growth strategy, regardless of the interest rate environment. With that, let me turn to our updated financial outlook for the year. Based on our results and improved visibility into the remainder of the year, we are updating our full-year financial guidance. We are narrowing our adjusted EBITDA guidance range to $495 million-$515 million, reflecting the strength of our contracted infrastructure business and continued commercial execution. We are lowering our maintenance capital expenditure guidance to $65 million-$75 million, reflecting the deferral of certain planned maintenance activities. Additionally, we are increasing our committed growth capital guidance to $400 million-$410 million to reflect the timing of expenditures related to the FSRU conversion project. Total CapEx remains generally in line with our previously communicated guidance.
We are pleased with our financial performance year to date and remain focused on executing our capital investment priorities while maintaining a strong balance sheet. With that, we will open up the call for questions.
We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Theresa Chen with Barclays. Your line is open. Please go ahead.
Good morning, everyone. I want to first touch on the Bahamas LNG hub. How do you see the opportunity scaling beyond the AxDo agreement? As you add the FSU and potentially other customers in the region, how should we think about the longer-term earnings and capital deployment opportunity across the Caribbean?
Hey, Theresa. It's Steven. Thanks for dialing in. By the way, I can't believe it was just 60 days since your conference at Labor Day. It feels like two years, not two months, but glad to report in on what we've done since then. We're pretty excited about. I'm ecstatic about the Bahamas. I mean, this is a flagship opportunity within the Caribbean. I would say the LNG bunkering opportunity in Bahamas is significant. Bahamas represents the largest source of potential cruise sector LNG consumption among all the Caribbean locations we've assessed. We're excited about this. As I said on the prepared remarks, 16 TBtu under this contract, that's less than half the capacity of the asset that we'll be deploying.
When you think about that, once we get up to full steam, so to speak, that's equal to or more than the pull-through demand in Jamaica of our infrastructure there. I like to think that we're adding the second tank farm in the Caribbean, and we're going to have great efficiencies and synergies from the logistics of delivering LNG to these two tank farms and then on to last-mile customers. We're pleased to work with AxDo, but there are a lot of people that we can help with these tank farms. Personally, I expect to see even portfolio players recognize that we're a good source for their own bunkering and last-mile opportunities. Just remember, I think by the end of 2030, you're going to have well over 1,500 LNG-capable ships on the water. We don't expect to capture all of that.
We just want to keep building up the opportunity in the Caribbean. It's a great location near U.S. export capacity, and we think we will have advantaged supply chains within the Caribbean to help anyone who wants to optimize their own last-mile and bunkering opportunity set. I could easily see us doubling this, but that's not the end of our ambition in the Caribbean by any means.
That's very helpful. Thank you. Yes, echoing your sentiments, time seems to fly, especially in these kinds of markets. Turning to the Middle East, on Iraq, with materials arriving soon and the construction workforce on site, what are the key milestones between now and the targeted second quarter 2027 start time? With contract volumes at the 250 MMcf per day minimum versus the 500 MMcf per day of capacity, how do you think about the potential ramp over minimum volumes over time?
Yeah, Theresa, this is Steven again. Let me take a part of that, then I'll go to David for the rest of it. Obviously, focused on the Middle East, I'm most excited today about getting this Caribbean opportunity in front of you guys, but we have been making steady progress there. Just landed back from Abu Dhabi, in fact, with Oliver yesterday. We were at ADIPEC. It's, I think, my sixth trip to the region since February. I never knew I could be so excited with photographs of construction materials offloading at sites. I mean, what the team's done in progressing this during this year and ensuring that we don't have to be impacted by Hormuz on any part of this project is just amazing. I will tell you, this is where Excelerate shines, this nimble company that can keep moving.
I mean, we prize the safety and security of our people and assets more than anything, but we also know that we have to evaluate conditions, adapt plans, and move forward. In terms of volume, you know by now, you've covered us for many years, we are conservative in nature. We talk to the contracted volumes on this project. The macro for Iraq, I mean, it's rock solid for LNG. They have a tremendous power deficit. They need to fix that first. But even after they fix that, for the long term, Iraq, we believe, will, like Kuwait's been taking LNG for nearly 20 years, and we believe just for reservoir maintenance, electrical load, that enhanced E&P activities will require a host of reasons.
We think that the opportunity in Iraq as they continue to grow their E&P activities means that LNG will be part of the mix for the long term. That being said, focus is on execution right now. There will be growth, and I think I've told you before that once people get LNG, they want more LNG. It's almost a law of nature. That's going to be true here, but I think what we really need to do is focus on execution, get through the first summer season, work with the government on their annual delivery profile that they want, and then we'll be able to speak more clearly to that ramp-up. But there will be a ramp-up coming from this. But David, if you would, speak to the milestones on the project.
Sure. Hi, Theresa. We're really focused on jetty reinforcement right now. That's the largest scope. After that, the real milestone that we're looking forward to is mechanical completion in early second quarter of 2027, so April of 2027. After we go into mechanical completion, and for those that may not be familiar with the term, that's really everything is welded together, everything is bolted together, all the cables are secured and terminated, and the facility is ready for commissioning. Now, commissioning on the terminal is really minimal. The terminal topsides really consist of a string of pipe and some valves and a control room. So, it's not an extensive commissioning scope. It's a matter of a few weeks or possibly days if everything goes to plan. So, it'll go together very quickly.
Thank you so much.
Your next question comes from the line of Bobby Brooks with Northland Capital Markets. Your line is open. Please go ahead.
Hey. Good morning, team, and thank you for taking my questions. You guys laid out the flexibility of your assets or proved out the flexibility of your assets and business model with how no assets are going to need to transit through the Strait of Hormuz. What I was looking for a little bit more color on, or just make sure I'm thinking of it right, was the switching around of some assets. That doesn't ultimately really change the contracted financials, given those are based on just, is the asset going to be ready and available to do LNG transits, right? Am I thinking of that right, or is there some more nuance there?
Yeah, Bobby, this is Steven. Thank you for noting the flexibility. I mean, that is the beauty of mobile redeployable assets and having a portfolio of assets. I mean, that is why we are built for years like this when we have to. But our view is that it is not going to change the contracted return profile. I mean, there are going to be some puts and minuses on all of this. You are not transiting vast oceans, moving things around, consuming fuel, but there will be some incremental nets on the other side. But across the board, we think that this is flat to our assumptions. I do not know if you want to add anything.
No, nothing to add. I agree with everything Steve has said. We have been obviously looking at this very closely. As you know, Bobby, we have announced on the Iraq project, the EBITDA run rate at the minimum take is about $100 million. That still holds. Same thing with the Colombia project, the 35% uplift still holds, and we are very comfortable that all of this will stay in the range that we have looked at, and they will be in line with what we have previously communicated.
Terrific. Then just, the hub and spoke strategy, obviously, that is with the AxDo announcement hit last night and this morning, kind of starting to play out on that. Just thinking, and the earlier question, I think you did a great job of explaining the next branch there. But just maybe turning, because obviously global company, not based on any one geo. Are there any other opportunities to replicate that, or ones that you think are more interesting? Maybe do not need to get into specifics, but is there assets already out there that you have that could start to leverage that, become a hub? Just wanted to hear how you are thinking about it a little bit more.
Bobby, the answer is probably yes. Not probably. The answer is yes, whether you are talking about the Caribbean or the world at large. I do want to focus on the Caribbean, because this is the first incremental large infra that we are putting into the Caribbean, generating further pull-through demand. It is not the last play in the Caribbean. The Caribbean, in our mind, it is just ideally suited, just jammed up next door to the U.S. And if you can take efficient full parcels of LNG under your portfolio there, it just makes a world of sense.
I refer to them as tank farms, but as you add these tank farms in the Caribbean, it is going to make your deliveries even more efficient, then it is going to give you better logistical lines on further hub and spoke development from there, and further types of infra that can generate pull-through demand within the Caribbean. Oliver can probably talk about the wider world, how this is a
Yeah. Good morning, Bobby. I think what you are seeing here with the Caribbean and this project is that, when we acquired the Jamaica assets, we started to show how we can diversify beyond the FSRUs and more into that downstream sector, creating that pull-through demand. I think the announcement in the Bahamas is a further proof point of that, with obviously it is going to be our first FSU, giving us access to those markets. Obviously, it is only normal that we take that, what we have learned technically, commercially on that, then we can look at that in other markets, how we can use our infrastructure more broadly beyond the FSRUs to kind of open up these markets and create these new opportunities. So, absolutely, we will be looking to use the Caribbean and are looking to use what we have done in the Caribbean to replicate elsewhere.
That is terrific to hear. Appreciate the time, and congrats on another strong quarter.
Your next question comes from the line of Olivia Foster with Goldman Sachs. Your line is open. Please go ahead.
Hi, team. Good morning. Thanks for taking our questions. Maybe to stay on the planned Bahamas LNG Hub for a moment, could you walk us through the mechanics for both the volume ramp profile and expected project returns across both the initial phase one for an early 2027 delivery and phase two starting in the second half of 2028? Then zooming out, could you spend a moment on the strategic vision for the Caribbean footprint as a whole? What other opportunities could we see Excelerate lean into in the coming quarters? Thank you.
Olivia, I am going to pass that around, but there are more opportunities in the Caribbean. You will notice we sat on this till it was fully baked, because we appreciate everyone who listens in on this call, and some are a little more competitive with us than others. But I assure you, we are wearing out that Miami hub airport of American, their own hub and spoke to the Caribbean, and we are all over that geography. We are actually moving more personnel to Miami to be able to cover that ground more and more. But longer term, there is a lot more there. We have spoken about it in the past. We have spoke about our expectations on EBITDA that we expect to achieve in the Caribbean over the next four years. We have not come off of that at all. We think this is a solid proof point.
But I will let Dana, you or Oliver talk to the ramp-up from the initial January deliveries to what comes from that.
Yeah. Thanks, Steven. Thanks, Olivia. Obviously, we have talked about this sort of phase one, phase two. The initial phase, we will be using our assets, our platform in Jamaica to serve our customer, AxDo. And we talked about $6 million of EBITDA in 2027 for that. I think we have also mentioned at full rate around $15 million on the base AxDo contract. That will be coming in from once you get 2028. Obviously, the FSU comes in middle of the year, so 2029 and 2030, you will start to see that full run rate there. Obviously, I think having the asset in the Bahamas is what will open us up to further opportunities and to further scale from there. I think, hopefully with that, you can kind of figure out some of the incremental run rate there.
I think more broadly, we had talked last year to sort of a five-year outlook on the Caribbean, and I think that generally still holds. This is obviously supporting that, and we still continue to see other opportunities. Last thing I would add on this is that obviously between Jamaica, Bahamas, and even our asset in Colombia, we have really got a good platform to build from. We have got assets that we can further optimize. Yes, we will be looking to deploy further capital for the right opportunities, but you are also going to see opportunities coming from the assets that we have already committed to in the Caribbean.
That is clear. I appreciate the color. For my second question, I wanted to ask for an update on the Methane Patricia Camila conversion. Could you spend a moment on how commercial conversations are progressing for this vessel? Maybe a moment on the uptick in project CapEx. Sticking on the theme of conversions here, alongside your EPC award to Seatrium, I believe there was a second shipyard conversion slot option that Excelerate had secured. What details can you share on the exercise window and/or commercial demand you are seeing for the next FSRU opportunity more broadly? Thank you.
Olivia, this is Steven. I will make a couple of comments and push it to David. The CapEx we zeroed in on, all in, including the assets, about $260 million. David, team, I are all very pleased with the final engineering design that drove that. We still feel solid. You are going to comfortable that this is an awesome asset that will be delivered at just the right moment in time to capture good uplift. We have no problem with saying we have absolute confidence in the five to seven build multiple off of that. We think we are just very excited about it coming on, and it is just a great asset. I have loved from the beginning the reliq that is already installed on that vessel.
As we move more and more, we do not know that we will go to an integrated infra project like Jamaica, like Bahamas, like Iraq, but it is going to be a very efficient vessel of a suitable size to get the widest range of cargoes. I like that about it in general. I do not want to speak to any options that we hold. We like options, obviously, but we are very deliberate when we consider exercising options. I am not going to elaborate on that further at this time. I do not know if David want to speak further about the opportunity or Oliver further about how we are thinking to deploy it.
I would just reinforce Steven’s comments about the capability of the asset. We’re just delivering a different caliber of asset with the Methane Patricia Camila, and we’re just really excited. Earning potential of that asset is just going to be head and shoulders above what we had previously planned because of the candidate vessel that we were able to secure at such an attractive price as well. In terms of commercial, maybe I’ll hand over to Oliver for any comments.
Yeah, and obviously on the commercial side, one, as David just said, we’re receiving a fantastic asset. The timing is great. Not only do we see a tight supply demand on the FSRU side, obviously, we’ve spent a while planning this conversion, so we don’t see the time that we’re coming to market suddenly a new build or other conversions just can’t compete. We’re going to be at a fantastic time with very limited FSRUs there competing with us. But also, as Steven alluded to, it’s also when the LNG supply is coming on. We see a lot of that LNG supply wave will be fully up and running by then.
We just combine the asset, the LNG market conditions, the FSRU supply demand balance is just, we feel like we’ve got a very good mix and having a number of conversations and obviously we’ll come back when we can, but we’re very confident on that timeline and that vessel.
That’s clear. I appreciate the time. Thank you.
Your next question comes from the line of Wade Suki with Capital One Securities. Your line is open. Please go ahead.
Good morning, everyone. I appreciate y'all taking my questions, and congratulations on the Bahamas announcement. I am just kind of curious maybe to dovetail a little bit off, I think it was Olivia's question here on the volume ramp to Bahamas. Any clarity you can give us there? Logistically, I am just kind of curious more, just personal curiosity on logistics. Are the ISO containers kind of going to Bahamas early on until the FSU is delivered? Any kind of color there would be great. Thank you.
Wade, I know you love the Caribbean, man, and we'll keep giving you more Caribbean opportunities. No secret, we'll use the Jamaica platform to start off, and we'll probably just make a milk run with our small-scale asset that we have on charter to satisfy it to start with. We'll consider every kind of delivery, though. We are agnostic. We're going to deliver all kinds. We're going to use the FSUs. We'll use the existing small scale we have. If we need to break bulk for other islands from Jamaica with ISOs, we'll do that too. So we are agnostic in how we will reach from our tank farms to end customers. Let's see, in terms of the ramp-up in demand, come on, man. It's like summer camp food. There's never enough of it, right? We love this.
You have to admit, Wade, you're a little surprised that we could be doubling Jamaica's throughput of LNG this quickly and announcing it less year and a half after signing that agreement. So I'm excited. With the team, I'm excited that we could very easily be doubling this throughput to all kinds of end users and suppliers who want to take advantage of it, and that we're announcing this so soon after we've entered the Caribbean. So, it's pretty exciting for us. If they want to amplify.
Yeah, Wade, just one point of clarity. It is a good question on your part. The plan is not to use ISOs to go up to the Bahamas.
Correct.
The plan is to use the existing tank farm that we have in Jamaica and to effectively take volumes from there up to the Bahamas and to sell to our customer from there. I think that obviously from a volume perspective, that is what allows decent volumes to start immediately in 2027, then obviously they will grow from there once we have the tank farm in the Bahamas in 2028.
Yeah. Wade, I just leave you with the advantage in the Caribbean, if we have never been clear with it, is you have to take full parcels from the U.S. and then deliver it to your staging areas. That is the advantage we have. People delivering ISOs from the United States are never going to compete with the logistical efficiencies of what we are building. I do want you all to understand that.
No doubt. Appreciate that. That sort of leads me into the next question on supply.
Dang it.
You know what I'm saying, right? I know you have, what, 35, 40 TBtus contracted with Plaquemines. I'm just kind of curious, again, especially considering the growth in Jamaica and now this Bahamas contract, presumably you guys are looking to lock in some more supply. Any way to tie in Colombia? Again, any kind of color on the supply side would be great. Thank you.
Wade, you're right. We do have Plaquemines coming on next year. We are more than covered near term for this, but we will always be looking for We're in the business of buying the LNG that our customers want. Almost uniquely among energy or LNG companies, that's what we do. We buy the LNG that our customers wish to receive through our infra, full stop. That's our mission in life. We're grateful for the portfolio, the matched portfolio that we're building as part of that, and obviously we will continue to do that as our customers' needs expand.
Understood. Thank you so much. Appreciate it.
Your next question comes from the line of Eli Jossen with JPMorgan. Your line is open. Please go ahead.
Hey, good morning, everyone. Just wanted to think about the shifting geopolitical landscape with respect to other markets where you might think about terminal integrations and a broader integration opportunity. Is there any kind of shifting within your thinking of where those opportunities might make sense, and if we could see incremental terminal announcements next year? Thanks.
Eli, this is Steven. I hope we've made clear, we're global, man. It's everything from Caribbean, LATAM, Arabian Gulf, South Asia, Southeast Asia. Nothing's changed. We like having a diversified global portfolio. That's part of what we hope investors find appealing to us. Not a shop with all eggs in one basket at all, just a very balanced division across the global footprint. I do think if you take a step back, Eli, look at what's going on this year. It's kind of crazy. 2025 through October, 357 MTPA of production LNG globally. This year through October, 348. That's with Hormuz. So even with Hormuz, you've got a global supply that's been stepping up, and all we're going to see is that's going to continue.
I think what your question, if I take a step back, it's basically, is there going to be a thirst for LNG, and is that thirst for LNG widespread across the world? And we believe it is. It is. And it's a good time to remind everybody, with all due respect for the quants, we don't care what the price of LNG is. We're buying and selling and doing so with fixed margins whenever we can. We don't mind if TTF goes down. Shockingly, we're probably the only energy company in Houston, we don't care if Henry Hub goes down. In fact, we kind of like it. We want all of the world to be thirsty, and the thirstier they get, we will be deploying assets, terminals to generate pull-through demand in those markets.
I wish I could say that we like one market more than the other, but it's going to turn on the fundamentals of the individual opportunity.
Got it. Then if we think about kind of the increasingly sequenced growth strategy you guys have outlined and more contracted EBITDA, as we turn to next year and think about guidance, obviously early to give guidance, but is there contemplation to maybe extend the outlook or kind of provide a runway into later in the decade of what EBITDA growth might look like?
Hey, Eli. This is Dana. I can take that. I mean, obviously, we aren't releasing guidance until February of next year, but we have outlined the building blocks. Just to kind of refresh you on that, Iraq obviously is a very successful project, roughly $100 million of EBITDA run rate. That's without any upside. We've obviously got Colombia with the 35% uplift. We've got the FSRU conversion coming out in 2028. Then we've talked a lot about our Bahamas project, which is part of our overall Caribbean strategy. We've talked a lot about the EBITDA growth plans for that, which we've said previously is $80 million-$110 million. So when you layer that all in, by 2029, those building blocks add up to anywhere between $250 million-$300 million of growth in EBITDA.
Obviously, we think there's more to come with other projects and potential upside, but I think we'll continue to reiterate that. As whether or not we'll give multi-year guidance, I mean, that's something we're still thinking through, but we'll continue to provide those building blocks and those numbers to you guys as much as we can.
Awesome. Really appreciate the color. Thank you.
Your next question comes from the line of Chris Robertson with Deutsche Bank. Your line is open. Please go ahead.
Thank you. Good morning, everybody. Thanks for taking my questions. Just wanted to hone in on Bahamas a little bit more, in terms of your partner there, AxDo, and presumably they're not the final end user. So wondering if you could comment what they plan to do with the initial offtake. Is this more going into the marine bunkering that Steven alluded to earlier, or is it for power gen or a mix of both? And what exactly will they do with it?
Chris, I don't think that's really our place to talk about. You can likely form a view on it. There are all kinds of advantageous last quarter mile destinations in the Bahamas, but I'm sure there'll be further announcements from the AxDo side on this, and I don't want to steal their thunder from them, so we'll let them do that. But we are excited. Just to be clear, we may end up with some bunkering assets in the future, but we kind of like being agnostic as to who's actually loading it onto the ship. So, I think our vision at this point is kind of last mile rather than last 500 meters, and you can look for us to continue along that. So, apologies for this, but I'm sure there'll be some further announcements from the AxDo side, and we'll let them have that opportunity.
Now, I think you were reading my mind, Steven, because I was coming into a question here leading off that one, which was, as you look around the world in terms of marine LNG bunkering opportunity, obviously you have some assets sitting in Europe at the moment with some major ports and infrastructure there, including Rotterdam, et cetera. As you look around at some of the more major port areas, of course, Bahamas is known for large cruise ships and other things like that, but looking at Singapore, Rotterdam, Shanghai, et cetera, are there any places like that where LNG bunkering infrastructure opportunities are interesting to Excelerate?
I think there will be more in the Caribbean, but, I mean, you are an expert on these subjects, Chris, and, I mean, you know, I think I mentioned it earlier, like it's going to be 1,500, 1,600 LNG-capable fueled assets on the water. Those typically have fuel tanks of like 12,000 cubic meters to, I think, 18,000 cubic meters, depending upon the design of the vessel. These are enormous quantities of LNG. I love Shell's annual outlook and forecast. They're talking about LNG bunkering demand reaching 27 MTPA by 2035. I mean, it's extraordinary. We'll want to have infrastructure assets that will give us an advantage on creating pull-through demand for LNG through those, and we think we can assist people who want to have that last 500-meter connection by giving them an advantaged logistical cost of reaching those end users.
As with much in the Caribbean is a way to prove up the advantage of an interconnected hub, and then you want to take your show on the road, and put it to use elsewhere. But this will be a global opportunity. At this point, we're kind of laser-focused on Caribbean.
Absolutely. I appreciate the color, Steven. Thank you.
Your next question comes from the line of Michael Scialla with Stephens. Your line is open. Please go ahead.
Good morning. Wanted to get your latest thoughts on the Shenandoah. Are you still contemplating a potential conversion for it? Could it be a candidate for the FSU that you're going to be putting in the Bahamas in the second half of 2028?
Hey, Mike. This is Steven. It certainly can be a candidate for that. We're looking at that through the lens of our other fleet commitments, Atlantic Basin requirements, all kinds of factors. We don't have to make the call right now. Shenandoah would be an excellent candidate for that, but there are a number of other assets out there that we're evaluating as well. Coming up before too long, we will make that call and share it with you, just not in a position to do so today.
Got it. Wanted to go back to the Pacam, the conversion there. You've selected a couple of companies, Seatrium and NGS, for work on that. Can you give us some idea of what went into that selection process for those companies? Have either of them done a conversion before, or are you breaking new ground here? Just trying to get a sense for the risk and maybe some of the milestones to look forward to there.
I'll let David take that. I'm pretty sure, I'm hoping we're not breaking any new ground.
No, absolutely not. Thanks for the question, Michael. The Seatrium shipyard, they've really done the lion's share of all the conversions in the industry. They are leading the industry in that type of project. So we're very comfortable with the selection of Seatrium. We're very happy with the partnership that we've formed with them, and we look forward to a successful construction program. In terms of Nord Gas, NGS, this is the former Wärtsilä group. They also have done this type of work. I would consider them the leading company in doing this type of work. Also have a long-running history with them, a very good relationship and a partnership that we value. We're going to use them for the Pacam. We're also using them for the reliquefaction modules that have gone together very well for the Experience work that's upcoming in next quarter.
So we're really pleased with the selection of both of those contractors or contracts. It just gives us a lot of confidence in how this project is going to be executed.
Sounds good. Thank you.
We have reached the end of the Q&A session. I will now turn the call back over to Steven Kobos for closing remarks.
Thank you all for joining us today. I think a lot of good ground covered today. Dana Armstrong's comment on building blocks, I want to reiterate that for you all because I think it's important. Basically, those building blocks, to repeat, are Iraq, Colombia, the FSRU conversion, reliquefaction deal on Experience, reliquefaction deal on Sequoia, the Bahamas hub project, and other Jamaica Caribbean growth. If you take all those building blocks we've pointed to, we expect EBITDA by 2029 to be between incremental growth EBITDA of $250 million-$300 million. I don't want anyone to miss that. That's stuff that's happening, that's stuff that's coming down the pike, and we feel comfortable with laying that out with this clarity. With that, we'll end the call. We'll see you guys on the road.
This concludes today's call. Thank you for attending. You may now disconnect.