Hoegh LNG Partners making progress on Lampung FSRU debt refinancing

New York-listed Hoegh LNG Partners is making progress in refinancing the PGN FSRU Lampung debt facility, according to parent Hoegh LNG.

The limited partnership said in September it had signed a deal with its lenders to defer the maturity date of the commercial tranche of its Lampung FSRU debt facility.

This deal gave the firm more time to conclude a refinancing of this tranche. The lenders agreed to defer the maturity date of the commercial tranche from September 29, 2021, until January 14, 2022.

In November, HMLP received commitment letters and a term sheet for refinancing of the commercial tranche, Hoegh LNG said in its third-quarter report.

The partnership expects to “complete this refinancing before the deferred maturity date, subject to certain required approvals by export credit tranche lenders, completing documentation and customary closing conditions,” it said.

Dispute with PGN

To remind, HMLP said in August it had filed a countersuit against Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN), a unit of Pertamina, over issues related to the Lampung FSRU charter.

The vessel serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia. Parent Hoegh LNG manages the FSRU while the limited partnership owns it.

HMLP has not completed the ongoing refinancing of the PGN FSRU Lampung credit facility.

This is due to the “failure by the charterer of the PGN FSRU Lampung to consent to and countersign certain customary documents related to the new credit facility,” the frim previously said.

These circumstances have left the partnership exposed to having to arrange alternative refinancing or rearrange the existing refinancing.

In connection with the dispute, Hoegh LNG said “no assurance can be given at this time as to the outcome of the dispute with the charterer of PGN FSRU Lampung.”

Pending class action lawsuit

On October 27 and November 3, two purported unit holders filed a class action securities fraud lawsuit in the US District Court for the District of New Jersey against HMLP and certain of its current and former officers, alleging violations of the Securities Exchange Act of 1934, the firm said.

HMLP “believes the allegations are without merit and intends to vigorously defend against them,” it said.

Most Popular

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

US LNG exports climb to 34 cargoes

US liquefied natural gas (LNG) plants shipped 34 cargoes during the week ending April 16. According to the Energy Information Administration, pipeline deliveries to the LNG terminals increased compared to the prior week.

Adnoc, ENN seal 15-year LNG SPA

UAE’s Adnoc has signed a 15-year sales and purchase agreement with Chinese independent gas distributor ENN to supply the latter with LNG from its LNG terminal in Al Ruwais.

More News Like This

Indonesian FSRU wraps up 69th STS LNG transfer

PGN LNG, a unit of PGN and the operator of the floating LNG import facility offshore Lampung, said in...

Golar sells Avenir LNG stake to Stolt-Nielsen

Avenir is a joint venture of Stolt-Nielsen, Golar, and Hoegh Evi, previously known as Hoegh LNG. Gold said in a...

Hoegh Evi, SEFE ink hydrogen pact

Norwegian FSRU player Hoegh Evi, previously known as Hoegh LNG, is joining forces with German gas importer Securing Energy...

Pertamina’s PGN pens domestic deal for Tangguh LNG supplies

PGN said on Friday the strategic partnership with BUMD aims to optimize the allocation of Tangguh LNG from PT...