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.

- Advertisements -

Most Popular

DSME cancels third LNG carrier order linked to Sovcomflot

South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering has terminated an order for another LNG carrier after a...

Woodside delivers Australian LNG cargo to Germany’s Uniper via Dutch Gate terminal

LNG player Woodside said it had delivered an LNG cargo from its North West Shelf project in Australia to...

QatarEnergy, ConocoPhillips ink long-term LNG deal to supply Germany

State-owned QatarEnergy has signed two long-term contracts with US energy firm ConocoPhillips to supply Germany with liquefied natural gas...

More News Like This

Hoegh LNG preparing FSRUs for German jobs

Floating LNG player Hoegh LNG Holdings is working to prepare its floating storage and regasification units for the upcoming...

Germany’s first LNG jetty completed in Wilhelmshaven

Germany's first FSRU-based LNG import facility in Wilhelmshaven is now ready to welcome Hoegh’s vessel in December following the...

Estonia’s Eesti Gaas gets another LNG cargo via Lithuanian FSRU

Eesti Gas, a part of Estonian investment firm Infortar, has imported another cargo of liquefied natural gas via the...

Germany’s Uniper awards Wilhelmshaven FSRU terminal gig to Lithuania’s KN

Lithuania’s LNG terminal operator KN has secured a contract from German energy firm Uniper to provide operational services for...