AGL Selects Höegh Esperanza FSRU

Norway-based floating liquefied natural gas (LNG) company Höegh LNG announced that its floating storage and regasification unit (FSRU) Höegh Esperanza has been selected by AGL Energy Limited for the Crib Point project in Victoria Australia.

According to a stock exchange notice from the FSRU provider, who owns and operates a global fleet of 10 floating LNG import terminals, Höegh Esperanza has both a closed loop and an open loop system and is because of this considered by AGL to be a better fit for the operational requirements arising from the Environment Effects Statement (EES) currently been undertaken by the Victorian Government.

The EES is expected to be concluded no earlier than late H1 2020. Final investment decision (FID) will be taken subject to and following the EES.

As Höegh Esperanza is currently on contract with CNOOC until June 2021. Taking into account the time needed for relocation, commissioning and start-up at Crip Point, this fits well with AGL’s planned commercial start-up in H1 2022.

The charter with AGL is for a period of 10 years and remains conditional on the board of directors of AGL Energy Ltd taking a FID for the project. Höegh Esperanza is expected to generate an annual EBITDA of USD 31m.

Meanwhile, AGL has today announced that the company expects first gas to be delivered from the proposed AGL Gas Import Jetty at Crib Point in Victoria in the second half of FY22. AGL had previously indicated first gas could potentially be delivered during FY21.

Confirmation of this timetable follows AGL's decision to select the Hoegh Esperanza as the floating storage and regasification unit (FSRU) for the Crib Point project, as opposed to the Hoegh Giant as communicated in December 2018.

AGL believes the Esperanza better fits timing and operational requirements arising from the Environment Effects Statement (EES) process currently being undertaken by the Victorian Government. The Hoegh Esperanza has a later delivery window than the Hoegh Giant.