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

Woodside terminates Commonwealth LNG SPA

Australian LNG player Woodside has terminated its two LNG sale and purchase agreements with US LNG terminal developer Commonwealth LNG.

Thailand in Alaska LNG talks

Thailand's PTT and Egco will engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project, according to Thailand's Ministry of Energy.

Energy Transfer seals Lake Charles LNG supply deals

Texas-based Energy Transfer has signed new supply deals for its planned Lake Charles LNG export facility in Louisiana as it works to take a final investment decision by the end of this year, according to its management.

More News Like This

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.

Igneo Infrastructure Partners wraps up Hoegh Evi stake buy

Infrastructure firm Igneo Infrastructure Partners has completed its previously announced acquisition of a 50 percent ownership stake in Norwegian FSRU player Hoegh Evi.

Hoegh Evi, Wartsila develop floating ammonia-to-hydrogen cracker

Norwegian FSRU player Hoegh Evi and a unit of Finnish tech firm Wartsila have developed what they say is the world’s first floating ammonia-to-hydrogen cracker.

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...