Höegh Gallant FSRU to Be Chartered as LNG Carrier

Höegh LNG Holdings’ floating storage regasification unit (FSRU) Höegh Gallant will begin a new charter contract as an LNG carrier. 

As informed, Höegh LNG and Egypt Natural Gas Holdings Company (Egas) have agreed to amend the time charter contract for the 2014-built unit.

Under the amended contract, the Höegh Gallant will be chartered as an LNG carrier to a third party, and Egas will compensate for the rate difference between the original FSRU contract and the new LNG carrier time charter.

The amended contract is expected to become effective in October 2018 and will run to April 2020, the termination date of the original five-year FSRU contract.

As part of the original FSRU contract with Egas, Höegh LNG has certain equipment installed on the jetty in Ain Sokhna, Egypt. The book value of this equipment was approximately USD 9 million as of June 30, 2018, and since the market value and alternative use of such equipment are unclear, Höegh LNG expects to record an impairment for a corresponding amount for the third quarter of 2018.

“We are proud to have provided FSRU services to Egas since 2015, during a period in which Höegh Gallant’s regasification capacity has been fully utilized, contributing strongly to balancing supply with demand in the Egyptian natural gas market,” Sveinung J.S. Støhle, President and CEO of Höegh LNG, commented.

“Under this amended contract we maintain our highly valued relationship with Egas, which we hope to further expand in the future as Egypt emerges as a regional energy hub,” Støhle added.

Höegh LNG owns and operates floating LNG import terminals, floating storage and regasification units (FSRUs) and LNG carriers (LNGCs).