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 only FSRU-based LNG import facility in Cartagena.

SPEC LNG operates the FSRU-based terminal in which Colombian gas distributor Promigas has a 51 percent stake while Dutch Vopak holds the rest.

The 170,000-cbm Hoegh Grace FSRU, owned by Hoegh LNG, started serving the LNG import facility back in 2016.

Moreover, it supplies regasified LNG to local power plants via a 9.2km pipeline which is connected to the national network.

According to Hoegh, the initial term of the FSRU charter deal is 20 years from late 2016. However, each party has an unconditional option to cancel the charter after 10 and 15 years without any termination fee.

Hoegh said in a statement last week that it has extended and also expanded its services to SPEC under the new deal.

“As Colombia faces a significant shift in its power requirements and a decline in domestic gas supply, LNG is positioned to continue supporting electricity generation and offsetting the projected natural gas deficit for industrial/residential demand,” it said.

The agreement with SPEC enables continuity and increase of energy supply through at least 2031, Hoegh said.

This means that the charter contract has been extended for five years.

SPEC LNG said in a separate statement that under the new deal the FSRU-based terminal would regasify up to 533 MMscfd, an increase from a current limit of 400 MMscfd.

This would allow the facility to meet up to 50 percent of Colombia’s natural gas demand, it said.

Back in 2021, Promigas revealed plans to increase regasification capacity at the FSRU-based facility in Cartagena.

Promigas said at time it planned to increase the capacity in phases and up to 600 MMscfd feet per day by 2025.

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