Hoegh LNG inks contract for Chile FSRU

MAY 27, 2015 — Höegh LNG Holdings has won another contract to supply a floating LNG import terminal. It reports that it signed an FSRU (Floating Storage and Regasification Unit) contract yesterday with Octopus LNG SpA ("Octopus") for the Penco-Lirquén LNG import terminal to be located in Concepción Bay, Chile.

Höegh LNG's President and Chief Executive Officer, 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 program."

The contract is for a period of 20 years and is expected to generate an average annual EBITDA of around $36 million.

The contract is subject to Octopus completing financing and obtaining necessary environmental approvals, and the planned start-up is in the second quarter 2018.

Hoegh LNG will service the contract with an FSRU from its newbuilding program currently in progress. The FSRU will be offered to Höegh LNG Partners LP in due course.

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