Hoegh, Egypt's Egas sign LOI for FRSU

OE Staff
Monday, May 12, 2014

Höegh LNG Holdings Ltd. has signed a letter of intent (LOI) with Egyptian Natural Gas Holding Co. (Egas) for the use of one of Höegh's floating storage and regasification units (FSRUs) – currently under construction at Hyundai Heavy Industries (HHI) – 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 which has been finalized as part of Egas scope, with topsides to be supplied by HLNG.

The LOI is for a five-year FSRU contract expected to generate an average annual EBIDA of around US$40 million. EBIDA is after local Egyptian tax expected to be paid under the contract. The FSRU is scheduled to start operations in 3Q 2014 and Höegh intends to use the Höegh Gallant for this project. The LOI is subject to board approval on both sides and the approval of the Egyptian competent authorities.

President and CEO Sveinung J.S. Støhle says: "We look forward to completing this project that will give Egas the fast-track infrastructure to import LNG  into Egypt. This project shows again the flexibility and versatility that Höegh LNG's FSRU solutions bring to the LNG markets."

Höegh LNG also announced that it has taken delivery of the Independence, the second of the four newbuilt FSRUs that the company ordered from HHI, on May 12. The Independence is under a long term charter to Klaipedos Nafta in Lithuania, which will commence no later than by the end of the year. In the interim, Höegh plans to deploy the unit in the short term LNG market.

Categories: LNG Vessels Production Natural Gas Africa FLNG

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