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Höegh wins FSRU contract in Chile

LNG Industry,

Höegh LNG Holdings Ltd has signed an FSRU contract with Octopus LNG for the Penco-Lirquén LNG import terminal, in Concepción Bay, Chile.

The FSRU contract is for a period of 20 years and is expected to generate approximately US$36 million per year in EBITDA earnings. Pending approvals, the planned start-up of the contract is 2Q18. Höegh will service the contract with an FSRU from its newbuilding programme, which is currently underway.

Commenting on the contract award, Höegh LNG President and CEO, Sveinung J. S. Støhle, said: “We are delighted to have been awarded the contract with Octopus for their new LNG import terminal in Chile, and look forward to completing the project together with our client.

“Our modern FSRU solutions offer our client the most cost efficient way of importing LNG to meet an increasing demand for natural gas used in power production in Chile. With this contract we have full contract coverage for our FSRU fleet and are therefore contemplating the next step in our FSRU expansion programme.”

Octopus' General Manager, Alfonso Ardizzoni, added: "We appreciate Höegh LNG's FSRU expertise, which allowed us to present a competitive and successful bid in the recent public tender process […] for the supply of electricity to distribution companies in […] the Chilean main electric grid.

“Höegh LNG's technology is a key service component of the natural gas delivery chain that will enable the construction of our El Campesino Power Plant as well as supplying the growing demand of natural gas in the Bio Bio region. We expect the LNG import terminal to substantially increase the reliability and competitiveness of the power generation and natural gas markets in Chile and are looking forward to a long term relationship with Höegh LNG".

Adapted from press release by Katie Woodward

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