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Höegh Gallant time charter amended

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LNG Industry,

Höegh LNG Holdings Ltd has announced that it has reached an agreement with Egypt Natural Gas Holdings Co. (Egas) to amend the Höegh Gallant time charter.

Under the amended contract, the vessel will be chartered as an LNG carrier to a third party, and Egas will compensate for the rate difference between the original floating storage and regasification unit (FSRU) contract and the new LNG carrier time charter. The amended contract is expected to become effective this October, and will run until April 2020 (the termination date of the original five-year FSRU contract).

As part of the original FSRU contract with Egas, Höegh LNG has certain equipment installed on the jetty in Ain Sokhna, Egypt. The book value of this equipment was approximately US$9 million as of 30 June 2018, and since the market value and alternative use of such equipment is unclear, Höegh LNG expects to record an impairment for a corresponding amount for 3Q18.

Sveinung J.S. Støhle, President and CEO of Höegh LNG, said: “We are proud to have provided FSRU services to Egas since 2015, during a period in which Höegh Gallant’s regasification capacity has been fully utilised, contributing strongly to balancing supply with demand in the Egyptian natural gas market. Under this amended contract we maintain our highly valued relationship with Egas, which we hope to further expand in the future as Egyptemerges as a regional energy hub.”

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