Höegh LNG signed a time charter for the floating storage and regasification unit (FSRU) Höegh Esperanza with CNOOC Gas & Power Trading and Marketing (CNOOC).
The time charter is for three years with a one-year extension option, Höegh LNG said in a statement on Monday.
Under the contract, Höegh Esperanza will be utilized in FSRU mode at the Tianjin LNG terminal in China for no less than an agreed-upon minimum period each year, with the balance of the year in LNGC mode and/or FSRU mode.
The contract will commence with immediate effect and has a rate structure that corresponds to the mode of use.
Chinese policies to encourage consumers to transition from coal to gas have caused natural gas consumption to increase sharply. This increased demand has required significant increases in LNG imports, as evidenced by China importing 12.7 million tonnes of LNG in the first quarter of 2018, or 61 percent more than in the same period of 2017.
To enable further growth in Chinese LNG imports in line with these policies, additional LNG import facilities need to be developed, including FSRUs, Höegh LNG notes.
Höegh Esperanza was delivered from Hyundai Heavy Industries in South Korea on April 5, 2018. This FSRU has a storage capacity of 170 000-cbm of LNG and a maximum regasification rate of 750 million standard cubic feet per day.
It is equipped with a GTT Mark III membrane containment system and dual-fuel diesel-electric (DFDE) propulsion.