Höegh LNG wins FSRU contract

Höegh LNG Holdings Ltd has been awarded an FSRU contract by Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) for a new LNG import terminal in Cartagena, on the Atlantic coast of Colombia. 

The contract is subject to SPEC obtaining necessary environmental licenses for the LNG project, which is expected to start operations mid-2016.

The FSRU contract is for 20 years, but includes options for SPEC to reduce the term to five, ten or fifteen years. SPEC will confirm the initial contract term before start of operations.

The FSRU contract is expected to generate an average annual EBITDA of US$ 40 -45 million, depending on the term of the contract. 

Höegh LNG will employ its only non-contracted FSRU for the project. The FSRU is currently under construction and will in due course be offered to Höegh LNG Partners LP. 

Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said: "We are delighted to have been awarded the contract with SPEC for the new LNG import terminal in Colombia and are looking forward to complete and start up the project together with our client. Through this agreement we are providing SPEC with the latest and most efficient FSRU regasification technology available in the market, and are committed to the success of the project". 

SPEC's General Manager, Jose Luis Montes, added: "We appreciate Höegh LNG's FSRU expertise, which allowed us to present a competitive proposal to the power generators. We expect the LNG import terminal to substantially increase the competitiveness and reliability of the power market in Colombia and are looking forward to a long term relationship with Höegh LNG".

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/regasification/04112014/hoegh-lng-wins-fsru-contract-1716/