Hoegh LNG Enters into LOI with HHI for Up to Six Floating Storage and Regasification Units (Norway)

Höegh LNG has today entered into a firm Letter of Intent with Hyundai Heavy Industries (HHI) for the delivery of two 170,000 cbm Floating Storage and Regasification Units (FSRUs). In addition to the delivery of two firm vessels, the LOI with HHI includes 2 + 2 optional vessels.

The new built FSRU’s are based on HLNG’s in house design, “Höegh FSRUTM”, and is a generic FSRU with 170,000 m3 storage capacity and flexible regas capacity, such that it will meet the technical requirements for the long list of new floating regas projects around the world.

Through the design, development and construction of the two Neptune Shuttle and Regasification Vessels (SRVs) delivered in 2009 and 2010; HLNG established itself as one of 3 companies that has a proven track record in the provision of floating regasification solutions to the LNG market.

The floating regasification market is in rapid growth, and there are currently 13 units in operation, 3 under construction, and around 25 in various stages of development. HLNG believes this will be the LNG segment with the strongest growth in the medium term, in particular in the Asia-Pacific region, but also for a number of fast growing economies in the Atlantic markets. This is simply because the FSRU’s is the most cost efficient and shortest way for a country to import LNG, which is the fuel of choice in particular for power generation.

Says Sveinung J. Støhle, President and CEO of HLNG:

“Given the very strong LNG market with an expected growth of 6-7% on annual basis next few years, and our qualification to bid for all new FSRU projects, we have with this agreement with HHI put HLNG in the position to compete for such projects based on our new built FSRU’s, which offers our customers the earliest possible delivery positions, a purpose built design, in addition to the most energy and cost efficient solution for their market, even compared to conversion solutions or first generation regas vessels. “Finally, I would add that we are very pleased to have reached this agreement with HHI, being a world class shipyard with a strong track record in the LNG and offshore segment and shipbuilding in general. We know their capability to deliver quality vessels on time and on budget.”

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Source: Höegh LNG, April 6, 2011;