Höegh Evi selects Seatrium for Egypt-bound FSRU conversion

Marine energy infrastructure developer Höegh Evi has signed a long-term time charter agreement with Egyptian Natural Gas Holding Company (EGAS) to deploy a floating storage and regasification unit (FSRU) in Egypt. The vessel will be converted from a liquefied natural gas (LNG) carrier by Singapore’s Seatrium.

The deal will see Hoegh Gandria spend ten years at Egypt’s Port of Sumed, starting in Q4 2026. The vessel is expected to supply up to 1,000 million standard cubic feet (mmscf) per day of peak LNG regasification capacity, making it a critical part of Egypt’s diversified and flexible energy infrastructure.

“Höegh Evi is proud of our longstanding role as a trusted energy infrastructure partner to Egypt and we are excited to begin the conversion of Hoegh Gandria to a floating import terminal, highlighting the unique flexibility of marine infrastructure. We look forward to building on the successful long relationship we have with EGAS and supporting the growth of Egypt’s diversified energy system,” said Erik Nyheim, President and CEO of Höegh Evi.

The FSRU Hoegh Gandria will replace the Hoegh Galleon, which was deployed to Egypt as the country’s first FSRU in July 2024, on an interim charter from Australian Industrial Energy (AIE) and Höegh Evi. The Galleon is slated to stay in Egypt for up to an additional year before leaving for the LNG terminal in Port Kembla, Australia, in 2027.

The Norwegian player bought Hoegh Gandria in February 2023 to convert it from an LNG carrier to a high-capacity FSRU for long-term deployment. The conversion is expected to speed up its deployment, reinforcing what the company describes as its strategy to leverage the flexibility and high-performance capabilities of marine infrastructure. 

Höegh Evi said the conversion would start immediately to ensure the timely delivery of the FSRU, putting Seatrium in charge of the work the day after the deal with EGAS was announced.

Øivin Iversen, Chief of Projects at Höegh Evi, expressed his satisfaction with working with Seatrium on what he says is a significant project for his company. Iversen believes Seatrium’s track record of delivering complex projects and its commitment to innovation and quality will be crucial in ensuring that the FSRU supports the company’s mission to provide reliable and sustainable energy solutions.

The Singaporean player plans to waste no time and kick off engineering works for the project this month. Expected to last 18 months, the job entails the installation of a regasification skid, and integration of key supporting systems such as cargo handling, utility, offloading, electrical, and automation systems.

Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium, noted: “Our longstanding partnership with Hoegh, built on successfully delivering major repairs and retrofits for their LNG carrier fleet over the years, is a testament to the trust and confidence they have in our capabilities. This new FSRU contract not only underlines that trust but also highlights our ability to deliver technically demanding, highly complex projects with precision.” 

EGAS chartered another FSRU, Energos Eskimo, from New Fortress Energy in December 2024. The ten-year deal for the vessel to be stationed at the Sumed Port is expected to start in the second half of 2025.

In addition to Egypt, Höegh Evi is working on improving energy security in the Netherlands. With its partner VTTI, the Norwegian player officially launched the permitting process for the Netherlands’ third LNG terminal earlier this month.