Hoegh LNG bags charter deals with Trafigura and Cheniere

Norway-based Hoegh LNG said Tuesday it secured several charter deals with commodity trader Trafigura and US export player Cheniere.

Under the first deal, Trafigura opted to extend the existing time charter for Hoegh Gannet by 12 months. The FSRU mostly serves in the spot market as an LNG carrier.

In addition, the duo also entered into a new time charter deal for Hoegh Gallant for 12 months from the redelivery from its current charter at the end of March 2021.

Moreover, Hoegh also reached a deal with Cheniere for the extension of the existing time charter for Hoegh Galleon for a period of 12 months. This FSRU also serves as an LNG carrier in the spot market.

Rates “consistent with the market”

The rates for the time charters are “consistent with the term market rates for TFDE LNGCs and modestly above those achieved for Hoegh Gallant and Hoegh Gannet in 2020,” the Norwegian firm said.

The three time charters also include extension options for the charterers which could result in back-to-back employment with potential new FSRU awards, it said.

With these charters, Hoegh says its fleet secured full contract coverage for 2021, but with the exception of Hoegh Esperanza that currently operates as FSRU in Tianjin for CNOOC.

For this vessel, the firm is in discussions with the Chinese firm on an extension from the expiry of the existing contract in June 2021.

The company added it aims to secure an extension that potentially covers the period until Hoegh Esperanza is planned to be employed on a long-term FSRU contract.

Höegh Esperanza should go to work for AGL’s Crib Point FSRU project in Australia, depending on a final investment decision.

“We are off to a very good start for 2021 with these charters in place, taking advantage of the seasonally strong LNGC market to bridge the interim period with solid counterparties,” Hoegh’s chief Sveinung Stohle, said.

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