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Egypt to acquire FSRU import terminal

LNG Industry,

Norwegian company Höegh LNG is set to charter one of its floating storage and regasification units (FSRUs) to Egyptian Natural Gas Holding Company (Egas). The agreement was outlined in a Letter of Intent (LOI), which states that the FSRU, one of four Höegh LNG newbuilds currently under construction at Hyundai Heavy Industries (HHI), will act as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez.

The FSRU will be moored at a jetty and Höegh LNG will supply the topsides.

The LOI is for a five-year FSRU contract expected to generate an average annual profit of around US$ 40 million. The FSRU is scheduled to start operations in the third quarter of 2014 and the company intends to use the Höegh Gallant for this project. The LOI is subject to board approval from both companies and endorsement from Egyptian regulators.

Fast-track infrastructure for Egypt

Sveinung J.S. Støhle, President and CEO of Höegh LNG, said that the agreement with Egas represented a significant milestone. The project, he said, “will give Egas the fast-track infrastructure to import LNG into Egypt”.

Earlier today Höegh LNG announced that it had taken delivery of the second of four FSRUs ordered from HHI (the Independence) that has been chartered to Klaipedos Nafta under a long-term contract.

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