Höegh LNG : New FSRU contract with HHI and contract allocation update

By Curious

Höegh LNG Holdings Ltd. (Höegh LNG) announced yesterday that it has signed a new Shipbuilding Contract (SBC) with Hyundai Heavy Industries Co., Ltd. (HHI) for a new Floating Storage and Regasification Unit (FSRU) for delivery in Q4 2018 (FSRU #9). The FSRU will have a storage capacity of 170,000 m3 and a max regasification capacity of 1,000 MMscf/day and with full trading capabilities.

Reference is further made to the stock exchange notices in December 2016 where Höegh LNG reported it had signed two 20 years FSRU charters with each of Quantum Power ("QP") for the Tema LNG Project in Ghana and Global Energy Infrastructure Limited ("GEIL") for the LNG import project in Port Qasim near Karachi, Pakistan. Both projects have start-up in Q2 2018. (See the related news below)

The Company has spent considerable efforts optimizing its FSRU portfolio, maximizing charter revenues from FSRUs under construction and reducing overall technical risks. The Company has therefore decided to allocate FSRU#7 (HHI HN 2552) to serve the QP charter in Ghana and to allocate FSRU #9 (HHI HN 2909) to the GEI charter in Pakistan. The initial period of the GEI charter from Q2 2018 will be covered by an interim FSRU from Höegh LNG's portfolio until the new FSRU is delivered.

The FSRU newbuilding program that the Company entered into with Samsung Heavy Industries Co., Ltd. (SHI) on 17 January 2017 for one firm (FSRU #10) plus three options is unaffected by the above allocation as the first delivery from SHI is scheduled for May 2019.

Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: "First of all I am very pleased that Höegh LNG through its newbuilding program and market position has been able to establish a contract coverage solution which is in line with our strategy of building new FSRUs. Secondly, I am proud to see that through Höegh LNG's innovative approach and in-house design of our FSRUs coupled with our long-standing relationship with HHI, Höegh LNG has been able to secure a newbuilt FSRU in the shortest possible time. With this order, Höegh LNG now has 10 large size newbuilt FSRUs in operation or under construction, preserving our position as the market leader in the FSRU segment."

Related news: 

Höegh LNG awarded long term FSRU contract in Ghana

Höegh LNG Signed 20 year FSRU charter agreement in Pakistan

Source: Höegh LNG