LNG

Feb 9 (LNGJ) - Höegh LNG reached an agreement with global commodities firm Trafigura for an extension of the existing interim LNG carrier time charter for the “Höegh Gannet” vessel by 12 months and entered into a new interim time charter for the “Höegh Gallant” for 12 months from the redelivery from its current charter at the end of March 2021. The Norwegian company had a further charter to report in an agreement reached with Cheniere Energy of the US to extend the existing interim charter for the “Höegh Galleon”.

   “The rates for the above-mentioned time charters are consistent with the term market rates for trifuel-diesel-electric LNGCs and modestly above those achieved for ‘Höegh Gallant’ and ‘Höegh Gannet’ in 2020,” said Höegh. The three time charters include extension options for the charterers which can result in back-to-back employment with potential new FSRU awards,” it added.

The Hiranandani Group of India and Höegh LNG of Norway have confirmed they are on track to deploy a floating import terminal in March 2021 to supply liquefied natural gas to the West Coast Indian state of Maharashtra and become to become nation’s seventh terminal.

Höegh LNG and Hiranandani Group subsidiary H-Energy have just completed and signed all documentation for the 10-year charter of the floating storage and regasification unit (FSRU), the “Höegh Giant”.

The agreement is for a period of 10 years with annual termination options after year five.

“The ‘FSRU ‘Höegh Giant’ is currently completing its LNGC charter with Spanish utility Naturgy, and will then proceed directly to Keppel Shipyard (Singapore) for minor modifications, in addition to pre-completion of the vessel’s five-year periodic class survey, originally scheduled for 2022 as this will improve efficiency and reduce costs.,” explained Höegh.

“The vessel is expected to be off hire for approximately 40 days in the first quarter of 2021 before the start-up under the H-Energy contract in March 2021,” added the Norwegian firm.

The Indian company is aiming to develop LNG regasification terminals and cross-country pipelines on the West and East coasts of India and is making a start with the FSRU at Jaigarh port.

H-Energy’s first vessel, the “Höegh Giant”, was built in 2017 and has a storage capacity of 170,000 cubic metres and peak regasification capability of 750 million standard cubic feet per day to handle up to 6 million tonnes per annum of LNG.

“The FSRU will deliver regasified LNG to the 56-kilometres Jaigarh-Dabhol pipeline connecting to the Indian National Gas grid and will also deliver LNG onshore for LNG truck-loading facilities,” the companies explained.

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

Höegh President and Chief Executive Sveinung J.S. Støhle said he was delighted to have completed the agreements with H-Energy for the first FSRU LNG import terminal in India.

“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,” added Støhle

“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 stated.

Höegh LNG, the Norwegian project company and fleet owner, said that coronavirus outbreak in China has not had any direct effect on the company’s revenues nor operations, including its floating storage and regasification unit deployed at Tianjin port in northeast China to supply Beijing.

Hoegh LNG, the Norwegian shipping and project company, said the global market continued to grow as it was selected for three floating storage and regasification unit (FSRU) contracts and with various tenders also being processed as lower natural gas prices are helping import infrastructure demand in Asia.

Norwegian fleet owner Hoegh LNG said it had taken delivery of the “Hoegh Gannet”, its ninth floating storage and regasification unit (FSRU), and the vessel would be chartered as a conventional carrier until a long-term import project is found.

Egypt is winding down its floating storage and regasification unit contracts for LNG imports as the Arab nation’s natural gas crisis has eased with the discovery and development of new offshore gas fields in the East Mediterranean and the Nile Delta.