New Fortress takes Hoegh Gallant FSRU on long-term charter

New York-listed Hoegh LNG Partners will charter its Hoegh Gallant FSRU for ten years to Wes Edens-led New Fortress Energy as part of a deal revealed on Friday.

The limited partnership said in a statement the new charter for the 2014-built 170,000-cbm FSRU would start in the fourth quarter of this year.

US LNG firm NFE will deploy the vessel off Jamaica.

Suspension of existing charter

Also, the firm said it has entered into an agreement to suspend the existing charter for the Hoegh Gallant with a subsidiary of its parent Hoegh LNG, with effect from the commencement of the new contract.

The charter rate under the new charter, in line with the current market, would be lower than under the existing charter for the FSRU, it said.

However, under the suspension agreement, Hoegh LNG’s unit shall compensate the partnership on a monthly basis.

This includes the “difference between the charter rate earned under the new charter and the charter rate earned under the existing charter with the addition of a modest increase until July 31, 2025, the expiry date of the existing charter,” it said.

After that, the partnership will earn the charter rate agreed with NFE for the remaining term of the new deal.

In addition, pursuant to the suspension deal, Hoegh LNG and the partnership would equally share “certain capital expenditures incurred to ready and relocate the Hoegh Gallant for performance under the new charter,” it said.

Old Harbour facility in Jamaica

“The new long-term FSRU contract entered into with New Fortress is an important development for the partnership as it extends the partnership’s contract coverage and average charter length and broadens our customer base and global footprint,” chief executive Sveinung Stohle, said.

“The Hoegh Gallant will serve the Old Harbour facility in Jamaica, where its size and performance will enable New Fortress to further optimize its already highly successful operation,” he said.

Launched in 2019 and docked 3.6 miles out at sea, NFE’s offshore Old Harbour facility features a FSRU and underwater natural gas pipeline.

The 125,000-cbm converted FSRU Golar Freeze currently serves the facility, according to NFE.

It supplies regasified LNG to Jamaica Public Service Company’s 190-megawatt power plant in Old Harbour and NFE’s 150-megawatt co-generation power plant at Jamalco in Clarendon.

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