Hoegh LNG ink LOI with Hyundai Heavy for up to six Floating Storage and Regasification Units

Source: Hoegh LNG

Hoegh LNG (HLNG) entered into a firm Letter of Intent (LOI) with Hyundai Heavy Industries (HHI) for the delivery of two 170,000 cbm Floating Storage and Regasification Units (FSRUs). In addition to the delivery of two firm vessels, the LOI with HHI includes 2 + 2 optional vessels.

The newbuild FSRUs are based on HLNG’s in house design, "Höegh FSRUTM", and is a generic FSRU with 170,000 m3 storage capacity and flexible regas capacity, such that it will meet the technical requirements for the long list of new floating regas projects around the world.

Through the design, development and construction of the two Neptune Shuttle and Regasification Vessels (SRVs) delivered in 2009 and 2010; HLNG established itself as one of 3 companies that has a proven track record in the provision of floating regasification solutions to the LNG market.

The floating regasification market is in rapid growth, and there are currently 13 units in operation, 3 under construction, and around 25 in various stages of development. HLNG believes this will be the LNG segment with the strongest growth in the medium term, in particular in the Asia-Pacific region, but also for a number of fast growing economies in the Atlantic markets. This is simply because the FSRU’s is the most cost efficient and shortest way for a country to import LNG, which is the fuel of choice in particular for power generation.

"Given the very strong LNG market with an expected growth of 6-7% on annual basis next few years, and our qualification to bid for all new FSRU projects, we have with this agreement with HHI put HLNG in the position to compete for such projects based on our new built FSRU’s, which offers our customers the earliest possible delivery positions, a purpose built design, in addition to the most energy and cost efficient solution for their market, even compared to conversion solutions or first generation regas vessels,” said Sveinung Stohle, president and CEO of HLNG. 

Höegh LNG is a fully integrated shipping and LNG service provider offering long-term floating production, transportation, re-gasification and terminal solutions for Liquefied Natural Gas (LNG). The company operates a fleet of seven LNG carriers including two innovative Shuttle and Re-gasification Vessels (SRVs). In addition to transporting the LNG, these two vessels act as floating terminals while delivering the natural gas to the market. In addition to the head office in Oslo, Höegh LNG has established presence in Singapore, London (UK) and Tampa (Florida, US).

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