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Hoegh LNG wins FSRU contract in Indonesia

LNG Industry,

Hoegh LNG has signed an agreement with PT Perusahaan Gas Negara (PGN) to provide them with an FSRU and mooring system offshore Belawan, near the city of Medan, in North Sumatra, Indonesia. The project will employ the first of Höegh LNG's new building FSRUs under construction at Hyundai Heavy Industries Ltd in Korea. 

The agreement is a firm 20 year charter party with two five year options to extend for a total period of 30 years. This is the first agreement of this duration in the FSRU market. 

The FSRU for the Medan project will be financed on a project basis and Höegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as structuring banks for the project financing. The EBITDA contribution is approximately US$ 40 million per year for the first 20 years and approximately US$ 60 million per year for the extension periods, totalling approximately US$ 1.4 billion including the extension periods. The target start-up date is in September 2013.

President and Chief Executive Officer, Sveinung Støhle, says, "The agreement with PGN to provide the North Sumatra FSRU is a great achievement for Höegh LNG and it confirms that we are in the forefront of the emerging and solid market for FSRUs in Asia.“

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