Hoegh LNG eyes Australian FSRU project

Norway’s Höegh LNG is looking at the possibility to provide a floating regasification unit (FSRU) to an LNG import development in Australia, according to Chief Executive Sveinung Støhle.

During the company’s fourth-quarter results conference call, Støhle said that “we are in the initial stages on this project and we firmly believe that an FSRU will be realized, and maybe even more than one.”

According to Støhle, project start-up for this project could be expected in 2019.

The CEO did not reveal any other details on the import development.

LNG World News contacted Höegh LNG for a comment. A Höegh LNG spokesperson said the company does not comment on its commercial activities.

Australia’s second-largest power and gas retailer, AGL Energy said earlier this month it was progressing with its plans to build an LNG import terminal in the southeastern part of Australia to help deal with a potential gas supply shortage in the region.

AGL is developing an import facility despite the fact that Australia is on its way to becoming the world’s largest exporter of the chilled fuel. The country has currently seven operating LNG export developments and three more under construction.

However, “LNG production is not where the market is and building pipelines across that continent is economically prohibitive,” Støhle noted.

AGL expects to make a final investment decision on the LNG import project by June 2018.

Around 40 potential FSRU projects

Discussing the FSRU market, Støhle said that there are 20 FSRUs in operation, with about 8-9 under construction.

There is a potential for around 40 new FSRU projects in the future, according to Støhle.

For example, Croatia, a country situated in the Balkans on the east side of the Adriatic Sea, is developing a floating LNG import project worth about 363 million euros.

The LNG project on the island of Krk has been recently awarded 102 million euros under the European Union’s Connecting Europe facility (CEF).

The funds are for the infrastructure part of the FSRU project.

“That is a very strong signal that this type of solution can also be implemented in other places in Europe in addition to the one that we already have in operation in Lithuania,” Støhle said.

He also said that “there is a very positive market outlook” for FSRUs, adding that new customers are looking for newbulidings, rather than converted LNG carriers.

LNG World News Staff