Indonesia: PGN Concludes Relocation of Medan LNG FSRU

Reference is made to stock exchange notices dated 17 June and 7 December 2011, where Höegh LNG Holdings Ltd. informed about the Medan LNG Floating Storage and Regasification Unit (“FSRU”) project in North Sumatra, Indonesia.

Furthermore, reference is made to the stock exchange notice dated 25 January 2012, where Höegh LNG announced the signing of a firm and final agreement with PT Perusahaan Gas Negara (“PGN”) to provide PGN with an FSRU and mooring system offshore Belawan, near the city of Medan, in North Sumatra, Indonesia.

PGN has concluded to change the location of the FSRU from offshore Belawan to offshore Labuhan Maringgai on the East coast of South Sumatra where two subsea pipelines owned and operated by PGN are crossing the Sunda Straits to West Java. The 20 year firm charter party with two five year extension options remains in full force and effect. The charter party include provisions for a relocation. This change of location will as far as the Company is informed not impact the project schedule.

President and Chief Executive Officer, Sveinung Støhle, says: “The rights and obligations in the agreement with PGN signed on 25 January this year remain unchanged and we will continue the work together with PGN to complete the project at the new location. In fact, the ability to accommodate a change of site only underscores the high degree of technical flexibility our FSRU solutions offers to our customers.”

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Source: Höegh LNG, March 23, 2012