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), a unit of Pertamina, over issues related to the Lampung FSRU charter.

“With reference to the previously disclosed disputes and pending arbitrations with the charterer of PGN FSRU Lampung, Hoegh LNG is pleased to announce that the parties have entered into an amicable settlement,” Hoegh LNG said on Tuesday.

Höegh LNG said that the two firms have agreed to “finally and irrevocably settle all of the disputes, claims, and counterclaims between the parties that gave rise to the said arbitration proceedings and agreed to terminate the arbitrations with immediate effect.”

According to the FSRU player, the charter contract for PGN FSRU Lampung “remains in full force and effect and each party will cover its own costs in relation to the terminated arbitrations.”

Back in July 2021, Hoegh LNG Partners, now part of Hoegh LNG, received a letter where PGN said it would start arbitration to “declare the charter null and void, and/or to terminate the charter, and/or seek damages.”

After that, Hoegh LNG Partners filed a countersuit against PGN.

The 2014-built 170,132-cbm FSRU serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia.

Moreover, the underutilized 2.7 mtpa facility completed in November last year its 52nd ship-to-ship operation since it started operations in 2014.

Connected to a tower yoke mooring system, the unit delivers gas via a 21 km long offshore pipeline.

The regasified LNG from the FSRU-based facility goes for power generation and industrial users in West Java.

Most Popular

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

Australia’s Viva Energy gets OK for Geelong LNG import terminal

Australia’s Viva Energy has secured approval from the Victorian government for its proposed FSRU-based LNG import terminal in Geelong, Australia.

More News Like This

Inpex pens preliminary Abadi LNG deals with Indonesian firms

A unit of Japan's Inpex has signed preliminary agreements with Indonesian firms regarding the planned Abadi LNG project in Indonesia.

Seatrium scores FSRU conversion job from Hoegh Evi

Singapore’s Seatrium has secured a contract from Norway's Hoegh Evi to convert the latter's LNG carrier Hoegh Gandria into a floating storage and regasification unit.

Egypt’s EGAS inks new FSRU charter deal with Hoegh Evi

Norwegian FSRU player Hoegh Evi has signed a new charter deal with Egypt’s EGAS to deploy a converted FSRU in Egypt. Hoegh Evi will convert the LNG carrier Hoegh Gandria to a floating storage and regasification unit.

VTTI, Hoegh Evi launch permitting process for Dutch FSRU terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, and Norwegian FSRU player Hoegh Evi have officially launched the permitting process for their FSRU-based facility in the Netherlands.