AGL Picks Höegh Esperanza FSRU for Australian Crip Point LNG Project

AGL Shipping has selected Höegh Esperanza as the floating storage and regasification unit (FSRU) for the Crib Point project in Victoria, Australia, Norwegian FSRU owner Höegh LNG said.

In December 2018, the two companies signed a time charter deal for FSRU Höegh Giant, however, AGL has now picked Höegh Esperanza.

As explained, the 170,000 cbm Höegh Esperanza has both a closed loop and an open loop system and is because of this considered by AGL to be a better fit for the operational requirements arising from the Environment Effects Statement (EES) currently been undertaken by the Victorian Government.

The EES is expected to be concluded no earlier than late H1 2020. Final investment decision (FID) will be taken subject to and following the EES.

Höegh Esperanza is currently on contract with CNOOC until June 2021. Taking into account the time needed for relocation, commissioning and start-up at Crip Point, this fits well with AGL’s planned commercial start-up in H1 2022, Höegh LNG said.

The charter with AGL is for a period of 10 years and remains conditional on the board of directors of AGL Energy Ltd taking a FID for the project.

Höegh Esperanza is expected to generate an annual EBITDA of USD 31 million.

Crib Point is a gas import project intended to increase the supply of natural gas in south-eastern Australia. It will source gas from Australian and international suppliers for gas customers in south-eastern Australia. The gas would be transported on LNG carriers from interstate and overseas, transferred to another ship and converted from liquid form back into gas on that ship and then piped into the existing transportation network.