Höegh ties up 10-year FSRU charter

Thursday, 04 February 2021
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Höegh LNG Holdings has finalised and signed all documentation needed for the 10-year charter of an FSRU to India’s H-Energy.

The company has selected ‘Höegh Giant’ to fulfil the 10-year contract. Annual termination options could be available after the first five-year period.

Previously, a binding commitment had been announced in an Oslo Bors notice on 19th November, 2020.

‘Höegh Giant’ is currently completing a Naturgy charter, operating as an LNGC. Following the charter, she will sail directly to Keppel Shipyard for minor modifications, in addition to pre-completion of the vessel’s five year class survey, originally scheduled for 2022, as this will improve efficiency and reduce costs, Höegh explained.

The FSRU is expected to be off hire for about 40 days in the first quarter of this year before the start-up of the H-Energy contract in March.

‘Höegh Giant’ will be the first FSRU to operate in India and will deliver natural gas to the 56 km Jaigarh/Dabhol pipeline connecting the LNG import terminal to the national gas grid.

The unit will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNGCs for downstream distribution or LNG bunker services.

H-Energy’s FSRU terminal will allow coal consumption to be replaced by natural gas at a scale which reduces CO2 emissions by up to about 120 mill tonnes, NOx emissions by about 97% and SOx emissions by around 99% over the 10-year period.

Höegh President and CEO, Sveinung Støhle said: "We are delighted to have completed the agreements with H-Energy for the first FSRU LNG import terminal in India, in particular given the strong ESG profile of this project, which is in line with HLNG’s vision to provide our customers with the infrastructure to access clean and affordable energy.

“A roadmap with H-Energy also includes the joint development of the downstream small-scale LNG market in the region, using the FSRU as the terminal for storage and re-loading to smaller vessels. India is a high-growth market and we see clear potential for Höegh LNG to provide additional FSRUs and clean energy solutions to this market over the coming years," he said. 

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