LNG FPSO Ordered

Friday, September 21, 2007
Höegh LNG go for LNG FPSO; teaming up with Aker Yards and ABB Lummus Global Höegh LNG announced that it has entered into agreements with major contractors and formally started the engineering and design for its first LNG FPSO Unit (Floating Production Storage and Offloading), with the objective to design and construct the worlds’ first LNG FPSO.

“Our strategy is to develop Höegh LNG’s business model from pure LNG transportation into offering also solutions for LNG production and floating regasification terminals”, says Sveinung Støhle, President and CEO of Höegh LNG AS. ”With the LNG FPSO in place, Höegh LNG can offer a complete offshore LNG supply chain” The proposed project will consist of a ship shaped offshore classed structure with the capacity to treat and liquefy a well stream of approx 2.5 billion cubic meters pr. year, which will give an annual production of approx 1.6 million tons of LNG and approx 0.5 million tons of LPG.

The LNG FPSO will have storage capacity of 180 000 cubic meters of LNG and 30 000 cubic meters of LPG, and the first delivery is stipulated for mid 2011. The project (Pre-FEED) is managed and owned by Höegh LNG, with Aker Yards performing the work for the FPSO hull, containment and utility systems, and ABB Lummus Global doing the design work for the gas treatment and processing plant as well as the liquefaction and LPG plant. Agreements with contractors for the LNG offloading, and mooring arrangements as well as the classification society will be completed shortly. The design for the containment system is Aker Yards and Aker Kværner’s proprietary new Aker Double Barrier Tank LNG containment system., and the liquefaction technology is based on ABB Lummus Global’s proprietary “NicheLNGsm Turbo Expander” system. The Pre-FEED will take 4-6 months to complete. “We are already in discussion with several natural gas resource owners. With solid partners as Aker Yards and ABB Lummus Global in on the design of this project, we are convinced that we have a good position to introduce the first real LNG FPSO to the market,” “I also notice with satisfaction that the same potential customers very much appraise our “package of services” approach, where they can purchase the service from us to produce, transport, regasify and deliver their gas to the end user market in one seamless LNG chain”, says Støhle.

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