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Marine Log

February 16, 2007

Hoegh sells LNG carrier

Hoegh LNG has agreed to sell its LNG carrier Hoegh Galleon (ex Mystic Lady, ex LNG Challenger) to Maverick LNG Holdings Ltd on private terms. The vessel is scheduled to be delivered to its new owner between July and October 2007. In the meantime, it is available for employment.

Maverick LNG Holdings Ltd is a jointly held subsidiary of North Atlantic Pipeline Partners LP and LNG Partners LLC. It intends to use the vessel as temporary LNG storage associated with its LNG transshipment and storage projects, including prospective power generation development.

Alternatively Maverick is considering specialized deployment as the company has completed extensive engineering associated with various Hoegh Galleon conversion alternatives including FSRU (Floating Storage Regas Unit) and FLNG (Floating Liquefaction of Natural Gas) options.

The 87 000 cubic meter capacity Hoegh Galleon was built in 1974 and was acquired by Hoegh LNG in 1998 and rebuilt to high standard.

The vessel operated under a long term time charter to Suez LNG North America until 2006 when Suez LNG North America ordered the vessel in lay-up and later terminated the charter originally valid until 2017 against a cancellation fee.

"Hoegh Galleon has operated successfully under its time charter to Suez, and with this sale the vessel has been an extremely good project for Hoegh LNG," says Sveinung Stohle, CEO in Hoegh LNG. "The sale supports our strategy to venture into new parts of the LNG supply chain as it has opened up for exploring further cooperation and participation with the buyer and their projects.

Hoegh LNG will continue to manage the vessel technically for an unspecified period of time.