Hoegh LNG hunting FSRU contracts for three units

Norwegian floating player Hoegh is looking to find long-term work for three of its FSRUs currently trading as LNG carriers.

The company has currently five FSRUs working as LNG carriers and with contracts expiring in 2021.

FSRUs Hoegh Gallant, Hoegh Gannet are currently working under a 7-month and a 12 month-charter while Hoegh Giant serves its 15-month contract with Naturgy.

Hoegh Esperanza is operating as an FSU at Tianjin in China and will not start regasification operations until the winter season.

Charter contracts for Giant, Esperanza, and Gannet come with an extension option.

If exercised, these units would be fully employed into 2022, chief Sveinung Stohle said on Wednesday discussing Hoegh’s quarterly results.

Nine projects in the pipeline

Stohle said that the firm has nine projects in the pipeline including two in Australia, AIE’s Port Kembla and AGL’s Crib Point.

These projects have starting dates from 2021 to 2023, but most of them should launch in mid-2022.

For the Australian projects, the firm already plans the Hoegh Esperanza and the Hoegh Galeon that currently serves Cheniere.

However, both of these developments are still a subject to a final investment decision.

Aside with that, this means that the other three FSRUs could go on long-term charter to one of the remaining seven mentioned projects.

These include two FSRU projects in India, and developments in Latin America, Cyprus, and Philippines.

According to Stohle, besides the Australian projects, the First Gen project in the Philippines and the South American development are the “most advanced”.

This gives a big optimism to the firm to secure contracts for all the FSRUs given the number of projects in pipeline and the fact that Hoegh has been selected as preferred bidder for four of these.

“We are very comfortable with securing these contracts,” Stohle said.

He added all of these contracts, except one, will be eligible for a potential dropdown to the company’s New York-partnership as their duration would go up to 10 years.

Looking at results, Hoegh LNG logged a net profit of $2.9 million in the second quarter compared to a net loss both in the previous quarter and the comparable quarter in 2019.

EBITDA of $57.7 million also increased year-on-year but was slightly down compared to $59.5 in the previous quarter.

- Advertisements -

Most Popular

Atlantic LNG freight rates hit new record

Spot charter rates for the global LNG carrier fleet in the Atlantic basin have reached a new record high,...

Excelerate to splash about $332 million on FSRU order in South Korea

Excelerate Energy will pay about $332 million for a floating storage and regasification unit (FSRU) it ordered at South...

Excelerate orders FSRU at Hyundai Heavy

US floating LNG player Excelerate Energy has ordered a floating storage and regasification unit (FSRU) at South Korea’s Hyundai...

More News Like This

Lithuania’s KN declares option to buy FSRU from Hoegh LNG

Lithuania’s KN, the state-owned operator of the country’s first LNG import facility in Klaipeda, has exercised its option to...

Hoegh LNG wraps up HMLP acquisition

FSRU player Hoegh LNG has completed its previously announced acquisition of New York-listed Hoegh LNG Partners. Back in December 2021,...

HMLP shareholders approve merger deal with Hoegh LNG

New York-listed Hoegh LNG Partners, the operator of five FSRUs, said that its shareholders have voted to approve the...

HMLP expects to wrap up merger deal with Hoegh LNG in September

New York-listed Hoegh LNG Partners, the operator of five FSRUs, is expecting its previously announced merger deal with Hoegh...