UK: Hoegh LNG Completes Sale of Port Meridian Project

Höegh LNG said it has entered into an agreement to sell its wholly owned subsidiary Port Meridian Energy Limited for a consideration of USD 20 million to Meridian Holdings, an entity advised by West Face Capital Inc. and owned by a fund managed by West Face.

Port Meridian Energy Limited has developed plans and received permits for a deepwater port for LNG imports and regasification near the coast of Barrow-in-Furness in England.

Höegh LNG remains as the supplier and operator of the floating storage and regasification unit (FSRU) for the planned LNG import terminal under a Joint Development Agreement with the West Face Fund.

Meridian will continue to develop the commercial agreements for LNG imports and the pipeline connecting the FSRU to the gas distribution grid. Both parties are committed to successfully developing the project with an ambition to start operations in 2016.

Höegh LNG’s President and Chief Executive Officer, Sveinung J.S. Støhle, said, “We are delighted to have reached an agreement with West Face to develop our planned UK LNG import terminal. We look forward to continuing our commitment to the project together with West Face through the provision and management of the floating storage and regasification unit.”

On behalf of Meridian, Roger Whelan added, “Together with West Face, Meridian is very pleased to have this opportunity to expand our working relationship with Höegh LNG and to support the development of their FSRU technology. We look forward to working together with the Höegh LNG team on this exciting and much needed UK natural gas supply project.”

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LNG World News Staff, November 12, 2012