Hoegh LNG inks FSRU LOI with Samsung Heavy Industries

DECEMBER 7, 2016 — Höegh LNG Holdings Ltd. has signed a Letter of Intent with South Korean shipbuilder Samsung Heavy Industries for one firm and three optional floating storage and regasification units (FSRUs).

The agreement with SHI follows the December 1 award to Höegh of an FSRU contract with Quantum Power Ghana Gas Limited for the Tema LNG import terminal located close to Accra in Ghana. The contract is for a period of 20 years with a five year extension option for charterer and is expected to generate an average annual EBITDA of around $36 million.

Announcing the agreement with Samsung, Höegh LNG President and Chief Executive Officer Sveinung J.S. Støhle commented, “Last week we secured a new FSRU employment contract, and today we follow up with the ordering of our next series of FSRU newbuildings, in line with our declared strategy. With this agreement with SHI, whose selection has been subject to a competitive international tender, Höegh LNG has taken advantage of a very favorable newbuilding market to position itself for further expansion in the FSRU segment.”

The The 170,000 cu.m FSRUs have regasification capacity of 750 MMScf/day and full trading capabilities. The vessels have scheduled delivery dates of two units in 2019 and two units in 2020. The complete shipbuilding contract for the firm vessel is expected to be signed by mid-January 2017.