Höegh LNG signed 20-year FSRU Contract with Chilean Octopus LNG SpA

By Finance

Norwegian Höegh LNG Holdings, which is an owner and operator of LNG floating terminals, signed a 20-year FSRU contract (Floating Storage and Regasification Unit) with Chile-based Octopus LNG SpA for the Penco-Lirquén LNG import terminal. The Norwegian company signed the new floating terminal location to be at Chilean Concepción Bay, expecting to generate USD 36 million of EBITDA per year during its exploitation.

The works on the project are expected to start in the middle of 2018 when all necessary approvals regarding environmental issues are believed to be obtained and also  the Octopus project financing to be completed.

Höegh LNG Snags signed 20-years FSRU Contract with Chilean Octopus LNG SpA

Image: Höegh LNG Partners LP

For the contract implementation one of the Floating Storage and Regasification Units included in Höegh LNG newbuilding program, which is already under construction, will be used. 

The floating unit will be offered to Norwegian Höegh LNG in due course.

The Octopus General Manager Alfonso Ardizzoni said:

“We appreciate Höegh LNG’s FSRU expertise, which allowed us to present a competitive and successful bid in the recent public tender process ran by the Comisión Nacional de Energía for the supply of electricity to distribution companies in the Sistema Interconectado Central, the Chilean main electric grid.”

The Octopus officials believe that the Höegh LNG technology will have a significant role in the LNG delivery chain for the completing of the Chilean El Campesino Power Plant construction, also the facility will cover the expanding needs of natural gas in the Bio Bio region.

Representatives of the Chilean Octopus LNG SpA stated that the new LNG import terminal was expected to substantially increase the reliability and competitiveness of the power generation and natural gas markets.