Hoegh LNG Gets Commitment Letters for Lithuania FSRU Financing

Höegh LNG of Norway said it has received commitment letters from four banks for a USD 250 million corporate facility for the financing of the Lithuania FSRU.

The Facility is subject to credit guarantees by the Norwegian credit agency GIEK and the Korean credit agency K-sure, which has been provided through an Offer for Guarantee from GIEK and a Letter of Intent from K-sure for their respective portion of the guarante, the company said in a statement.

The facility is further subject to final documentation, which is in progress, it added.

Höegh LNG signed in March a ten year time charter agreement with AB Klaipedos Nafta for a floating LNG storage and regasification unit (FSRU) to be used as an LNG import terminal in Lithuania by Klaipedos Nafta.

Höegh LNG intends to use the second FSRU being built at Hyundai Heavy Industries Ltd. in South Korea for this project.

Höegh LNG’s President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: “We are very pleased with the structure of this facility and to have received commitments from our banks for the financing of the Klaipedos Nafta FSRU and with the inclusion of both Norwegian and Korean export credit agencies. The Facility will replace the portion of the existing USD 288 million bridging facility currently dedicated the FSRU. Furthermore, the Klaipedos Nafta FSRU project is on schedule in all aspects for a planned start-up in Q3 2014 .”

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LNG World News Staff, August 17, 2012