Indonesia: PGN Relocates Hoegh LNG’s FSRU

In January 2012, Hoegh LNG signed a firm and final agreement with PT Perusahaan Gas Negara (“PGN”) to provide PGN with an FSRU and mooring system offshore Belawan, near the city of Medan, in North Sumatra, Indonesia under a 20 year charter party.

Today, Hoegh LNG informs that PGN has decided to change the location of the FSRU from offshore Belawan to offshore Labuhan Maringgai on the East coast of South Sumatra where two subsea pipelines owned and operated by PGN are crossing the Sunda Straits to West Java.

Hoegh LNG explains that the prevously agreed 20 year firm charter party with two five year extension options remains in full force and effect. The charter party include provisions for a relocation. The Company says that this change of location is not expected to impact the project schedule.

President and Chief Executive Officer, Sveinung Støhle, says: “The rights and obligations in the agreement with PGN signed on 25 January this year remain unchanged and we will continue the work together with PGN to complete the project at the new location. In fact, the ability to accommodate a change of site only underscores the high degree of technical flexibility our FSRU solutions offers to our customers.”

Oslo based Höegh LNG operates a fleet of five LNG carriers and two floating storage and regasification units (FSRUs). In addition to transporting LNG, the FSRUs act as floating LNG import terminals delivering natural gas to the market. Höegh LNG has three FSRUs on order at Hyundai Heavy Industries.

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Offshore Energy Today Staff, March 23, 2012; Image: Hoegh LNG