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.

- Advertisements -

Most Popular

Hyundai Samho to build LNG carrier quartet for $1.08 billion

South Korea's Hyundai Samho has secured an order to build four liquefied natural gas (LNG) carriers for about $1.08...

Cedar LNG FID pushed back

Canada’s Pembina Pipeline and the Haisla Nation have again postponed a final investment decision on their Cedar floating LNG...

Eni to ship Congo’s first LNG cargo

Italy’s Eni will soon ship the first liquefied natural gas cargo from its Tango floating LNG facility moored in...

More News Like This

Indonesia’s PGN, Hoegh LNG settle Lampung FSRU dispute

Norwegian FSRU player Hoegh LNG has resolved a dispute with Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN),...

Hoegh LNG, SPEC ink Cartagena FSRU deal

Norwegian FSRU player Hoegh LNG and Sociedad Portuaria El Cayao (SPEC LNG) have signed a new agreement for Colombia's...

VTTI and Hoegh LNG join forces on Dutch FSRU terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, is joining forces with FSRU player Hoegh LNG...

Indonesia’s Lampung FSRU wraps up 52nd STS LNG transfer

Hoegh LNG’s Lampung FSRU serving Pertamina’s Perusahaan Gas Negara off the southeast coast of Sumatra in Indonesia has completed...