Höegh LNG inks LOI/Term-sheet with EGAS of Egypt for FSRU
Höegh LNG Holdings Ltd. (HLNG or Company) has signed a Letter of Intent (LOI) with Egyptian Natural Gas Holding Company (Egas) for the use of one of its Floating Storage and Regasification Units (FSRUs) under construction at Hyundai Heavy Industries as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea's Gulf of Suez. The FSRU will be moored at a jetty which has been finalized as part of Egas scope, with topsides to be supplied by HLNG, the company said in its press release.
The LOI is for a 5 year FSRU contract expected to generate an average annual EBIDA of around USD 40 million. EBIDA is after local Egyptian tax expected to be paid under the contract. The FSRU is scheduled to start operations in the third quarter of 2014 and the Company intends to use the Höegh Gallant for this project. The LOI is subject to board approval on both sides and the approval of the Egyptian competent authorities.
President and Chief Executive Officer Sveinung J.S. Støhle says: "We are delighted to have reached this significant milestone in our agreement with Egas, and look forward to completing this project that will give Egas the fast-track infrastructure to import LNG into Egypt. This project shows again the flexibility and versatility that Höegh LNG's FSRU solutions bring to the LNG markets".
About Höegh LNG
Höegh LNG is a provider of floating LNG infrastructure services, offering regasification, transportation and production services under long-term contracts. The company operates a fleet of four floating storage and regasification units (FSRUs) that act as floating LNG import terminals, and four LNG transportation vessels. In addition, Höegh LNG has two new FSRUs on order and has developed a solution for floating LNG production (FLNG). Höegh LNG is a Bermuda based company with established presence in Oslo, Singapore, London, Tampa and Jakarta. The company employs approximately 95 office staff and 350 seafarers.