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Friday, November 16, 2018

Höegh LNG's Höegh Esperanza FSRU Arrives at Tianjing, China

Maritime Activity Reports, Inc.

November 6, 2018

Pic: Höegh LNG

Pic: Höegh LNG

Höegh Esperanza, the Floating Storage Regasification Unit (FSRU) unit operated by Norway’s Höegh LNG Holdings, has arrived at the Tianjin LNG terminal in China and started commissioning for FSRU operations.

Höegh Esperanza is currently serving a three-plus-one year FSRU/liquefied natural gas carrier (LNGC) time charter with CNOOC Gas & Power Trading and Marketing, said a press release from the LNG transportation and services provider.

Under the contract, Höegh Esperanza will be utilised in FSRU mode for a minimum period each year, with the balance of the year in LNG carrier mode and/or FSRU mode. The rate structure corresponds to the mode of use, with an anticipated annualised EBITDA contribution when in FSRU mode of approximately USD 33 million.

The FSRU Höegh Esperanza was delivered from Hyundai Heavy Industries in April 2018 and entered the contract with CNOOC in June 2018. This high-specification FSRU has both open and closed loop regasification capability, an import capacity of around 6 million tonnes of LNG per year and storage capacity of 170,000 cubic meters of LNG. It is equipped with a GTT Mark III membrane containment system and dual-fuel diesel-electric propulsion, providing it with full LNGC trading capabilities.

Sveinung J.S. Støhle, CEO & President of Höegh LNG, said: We are proud to assist CNOOC in enabling China to import more attractively priced LNG. Following an aggressive coal-to-gas switch, China’s LNG imports look to increase by almost 50% in 2018, and the potential for further increases in LNG imports remains significant. Combined with the sale-and-leaseback financing for FSRU #10 secured earlier this year, this FSRU/LNGC contract for Höegh Esperanza with CNOOC reflects Höegh LNG’s commitment to the Chinese market, and our ambition to remain the preferred partner for future LNG import expansions.”

Höegh LNG operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs).

Höegh LNG's vision is to be the industry leader of floating LNG solutions. Its strategy is to develop the business through an extended service offering, with large-scale FSRUs as the main product, and focus on establishing long-term contracts with attractive risk-adjusted returns involving credible counterparts.

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