Höegh LNG finalizes 10-year FSRU charter

Höegh LNG Holdings Ltd. ("Höegh LNG") announced that it has completed and signed all documentation for its 10-year charter with H-Energy and selected the FSRU Höegh Giant to serve this agreement. The binding commitment was announced in a stock exchange notice on 19 November 2020. The agreement is for a period of 10 years with annual termination options after year five.

FSRU Höegh Giant is currently completing its LNGC charter with Naturgy, and will then proceed directly to Keppel Shipyard for minor modifications, in addition to pre-completion of the vessel’s five year periodic class survey, originally scheduled for 2022 as this will improve efficiency and reduce costs. The vessel is expected to be off hire for approximately 40 days in the first quarter of 2021 before the start-up under the H-Energy contract in March 2021.  

Höegh Giant will be the first FSRU operating in India and will deliver natural gas to the 56 km Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid and will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNG vessels for downstream distribution or LNG bunker services.

The H-Energy/HLNG FSRU terminal will allow for the replacement of coal consumption with natural gas at a scale which reduces CO2 emissions with up to approximately 120 million tonnes, NOx emissions with approximately 97% and SOx emissions with approximately 99% over the 10-year period. (Source: GIIGNL. Assumes average annual imports of 3 Mtpa LNG.)

President and Chief Executive Officer Sveinung J.S. Støhle says: "We are delighted to have completed the agreements with H-Energy for the first FSRU LNG import terminal in India, in particular given the strong ESG profile of this project which is in line with HLNG’s vision to provide our customers with the infrastructure to access clean and affordable energy. A roadmap with H-Energy also includes the joint development of the downstream small-scale LNG market in the region, using the FSRU as the terminal for storage and re-loading to smaller vessels. India is a high-growth market and we see clear potential for Höegh LNG to provide additional FSRUs and clean energy solutions to this market over the coming years."

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