Höegh LNG signs 20 year FSRU agreement with PGN in Indonesia

abarrelfullabarrelfull wrote on 17 Dec 2012 13:23

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25.01.2012 09:30

Reference is made to stock exchange notices dated 17 June and 7 December 2011, where Höegh LNG Holdings Limited ("Höegh LNG" or the "Company", ticker "HLNG") informed about the Medan LNG Floating Storage and Regasification Unit ("FSRU") project in North Sumatra, Indonesia.

The Company is pleased to announce that it has signed a firm and final agreement with PT Perusahaan Gas Negara ("PGN") to provide PGN with an FSRU and mooring system offshore Belawan, near the city of Medan, in North Sumatra, Indonesia.

The project will employ the first of Höegh LNG's new building FSRUs under construction at Hyundai Heavy Industries Ltd in Korea. The agreement is a firm 20 year charter party with two five year options to extend for a total period of 30 years. This is the first agreement of this duration in the FSRU market. The
FSRU for the Medan project will be financed on a project basis and Höegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as structuring banks for the project financing. The EBITDA contribution is approximately USD 40 million per year for the first 20 years and approximately USD 60 million per year for the extension periods, totalling approximately USD 1400 millions including the extension periods. The target start-up date is in September 2013.

President and Chief Executive Officer, Sveinung Støhle, says:

"The agreement with PGN to provide the North Sumatra FSRU is a great achievement for Höegh LNG and it confirms that we are in the forefront of the emerging and solid market for FSRUs in Asia. This further underpins our strong competitive position through our new building programme at Hyundai Heavy Industries.

Currently we have bids in for several similar projects globally and are in the process to submit bids for a number of further opportunities. We expect that the FSRU market will continue its strong growth also in the future. We are very pleased to be working with PGN to provide the first purpose built FSRU in
Indonesia and in Asia. This will be an important infrastructure development for Indonesia, and we already looking at similar opportunities for expanding our business in the country."

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