Höegh LNG Partners, the US affiliate of Höegh LNG Holdings now partnered with the infrastructure unit of US investment bank Morgan Stanley, has reorganized part of its finances on a floating storage and regasification unit deployed in Indonesia and the subject of a dispute with the former charterer.
Höegh LNG Partners has entered an accord for the commercial tranche of the loan on the Indonesian floating terminal, “PGN FSRU Lampung”, to allow for more time to conclude an overall refinancing.
“The lenders have agreed to defer the maturity date of the commercial tranche from September 29, 2021 until January 14, 2022,” said Höegh LNG Partners.
“Subject to commitment letters and a term-sheet for a refinancing of the commercial tranche being in place by December 29, 2021, the maturity date will automatically be further deferred to March 29, 2022,” it added.
Höegh LNG Partners said that notwithstanding the outcome of previously announced notice of arbitration served by the charterer on August 2, 2021, both parties have been continuing to perform their respective obligations under the lease and maintenance agreement for the “PGN FSRU Lampung”.
Indonesian state-owned gas company, PT Perusahaan Gas Negara (PGN), a unit of national oil and gas company Pertamina, is the charterer in question and has entered the arbitration process.
The vessel is the subject of a 20-year charter deal with PGN and is deployed off the southeast coast of Sumatra.
Hoegh LNG Partners received a letter at the end of July from PGN saying it would start arbitration to “declare the charter null and void, and/or to terminate the charter, and/or seek damages” because of dissatisfaction over some issues.
The partnership has maintained that based on an initial legal review, it believed the charterer’s position was without merit.
In the meantime, the “PNG FSRU Lampung” has continued to operate pursuant to the terms of the charter.