Hoegh LNG Inks LOI with Egas for Egypt FSRU

Höegh LNG (HLNG ) said that it has signed a letter of intent (LOI) with Egyptian Natural Gas (Egas) for the use of one of its FSRUs under construction at Hyundai Heavy Industries as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea’s Gulf of Suez.

The FSRU will be moored at a jetty which has been finalized as part of Egas scope, with topsides to be supplied by HLNG.

“The LOI is for a 5 year FSRU contract expected to generate an average annual EBIDA of around USD 40 million. EBIDA is after local Egyptian tax expected to be paid under the contract,” Höegh LNG said in a statement.

The FSRU is scheduled to start operations in the third quarter of 2014 and the company intends to use the Höegh Gallant for this project.

“The LOI is subject to board approval on both sides and the approval of the Egyptian competent authorities,” Höegh added.