Hoegh LNG Marks ‘Good Progress’ on FSRU #10 Financing

Höegh LNG is pushing ahead with securing financing for its newbuild floating storage and regasification units (FSRU) about to join the company’s fleet.

Announcing its results for the first half of the year, the company said that it was progressing well with obtaining financing for its tenth unit (FSRU #10).

“Höegh LNG is making good progress with the debt financing of FSRU #10, which is scheduled to be delivered
from the shipyard in May 2019. Several alternatives are being evaluated, representing further diversification
of debt financing sources for Höegh LNG,” the Norwegian company said, adding that, once secured, it will be fully funded with both equity and debt.

At the beginning of August, Höegh LNG secured a commitment letters for a USD 177 million debt financing for its ninth FSRU, set to be delivered by Hyundai Heavy Industries (HHI) in the end of November 2018.

Until the start up of FSRU projects, Höegh LNG will employ the newbuilding with an undisclosed energy company on a fixed LNGC time charter from delivery and for 15 months onwards. The agreement is subject to final approvals expected shortly.

The company added that it has been made aware that the approval process for the GNL Penco FSRU project in Chile is likely to be further delayed. Höegh Esperanza was intended to be employed for the project on a long term-charter, but due to the latest development Höegh LNG said the “parties  agreed for the contract expire.”

The vessel is on contract with CNOOC in China until 2021 and on firm offer in ongoing tender processes with start-up subsequent to the CNOOC contract.

In the most recent events, Höegh LNG has been selected as the provider of the FSRU to Australian Industrial Energy’s (AIE) LNG import project in Port Kembla, New South Wales.

The group has been selected for the final bid round for 2 new FSRU projects, which both have scheduled start-up by 2021.

For the first half of the year, Höegh LNG reported a net profit of USD 21.1 million, up from USD 20 million year-on-year as a result of higher EBITDA, offset by depreciation and interest expenses for Höegh Giant and Höegh Esperanza.