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 buy Hoegh LNG’s 170,000-cbm FSRU Independence.

KN revealed earlier this year it had decided to buy the unit for $153.5 million, excluding VAT, from Hoegh LNG at the end of its current lease deal in 2024.

After that, KN’s shareholder approved the deal. The company’s largest shareholder is the government of Lithuania with a 72.5 percent stake, followed by Achema with a 10.4 percent stake.

KN had a deadline by December 2022 to exercise its option to buy the FSRU under its current lease deal with Hoegh LNG.

Hoegh LNG confirmed in a statement on Wednesday that KN had exercised this option.

“The transfer of ownership is expected to occur in December 2024. Until then, the existing FSRU contract between a subsidiary of Hoegh LNG and KN continues unchanged,” Hoegh LNG said.

The FSRU has a regas capacity of 3.75 bcm but there are plans to boost the capacity up to 6.25 bcm due to very high demand as European and the Baltic countries look to reduce reliance on Russian gas and boost energy security.

Poland’s PGNiG and Latvia’s Latvenergo recently secured regasification capacity for a period of ten years at the FSRU-based facility in Klaipeda.

KN awarded four LNG terminal users from Lithuania, Latvia, and Poland capacity packages of 6 TWh per year, or over 0.5 billion cubic meters of gas after regasification, for a total of 24 TWh.

Most Popular

South Korea’s Posco says first LNG carrier to start ops in H2

Posco International, a unit of South Korean steel producer Posco, plans to start shipping LNG with its first dedicated LNG carrier in the second half of this year.

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.

Wilhelmshaven LNG jetty ready to welcome Excelerate’s FSRU

Dutch marine contractor Van Oord announced on Monday it had completed the new jetty for its client, state-owned LNG...

More News Like This

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.

KN awards contract for Klaipeda FSRU electrification project

Lithuanian LNG terminal operator KN Energies has selected a contractor to implement the Klaipeda LNG terminal electrification project.

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.