Hoegh LNG Enters into Medan FSRU Agreement with PGN (Indonesia)

Höegh LNG announced that it has entered into binding Heads of Agreement with Perusahaan Gas Negara​ (PGN) for the provision of a Floating Storage and Regasification Unit (FSRU) offshore Belawan, near the city of Medan, in North Sumatra, Indonesia.

The HoA is based on the use of Höegh LNG’s first FSRU newbuilding due for delivery at the end of 2013 and under construction at Hyundai Heavy Industries in Korea . The HoA is further based on a 20 year charter party agreement, which is the first agreement of this length in the FSRU market.

The charter party and associated project agreements are under completion by the parties. The FSRU for the Medan project will be financed on a project basis and Höegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as financial advisors for the project financing.

President and Chief Executive Officer, Sveinung Støhle, explains: “We are satisfied to have reached this important milestone in our negotiations with Perusahaan Gas Negara for a long-term contract for our first FSRU newbuilding. This confirms our strategy to focus on floating regasification terminals and underpins the competitive position of our newbuilding program at Hyundai Heavy Industries.”

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LNG World News Staff, December 07, 2011; Image: Hoegh LNG