Höegh LNG extends Trafigura, Cheniere charter deals

Norwegian floating LNG player Höegh LNG, has secured charter extensions of its current interim LNG carrier deals with Trafigura and Cheniere.

The company noted that it has reached an agreement with Trafigura for an extension of the existing interim LNGC time charter for Höegh Gannet by 12 months. The companies have also entered into a new interim LNG carrier time charter for Höegh Gallant for 12 months from the redelivery from its current charter at end of March 2021.

Further, an agreement has been reached with Cheniere to extend the existing interim LNG carrier time charter for the Höegh Galleon for 12 months.

The rates for the above-mentioned time charters are consistent with the term market rates for TFDE LNG carriers and modestly above those achieved for Höegh Gallant and Höegh Gannet in 2020, the FSRU specialist said in its statement on Tuesday.

The three time charters include extension options for the charterers which can result in back-to-back employment with potential new FSRU awards.

With these charters, the company’s fleet is secured full contract coverage for 2021, with the exception of Höegh Esperanza where Höegh LNG is in discussions with the existing charterer on an extension from the expiry of the existing contract in June 2021.

The company aims to secure an extension that potentially covers the period until Höegh Esperanza is planned to be employed on a long-term FSRU contract. Höegh Esperanza is, conditional on a final investment decision being made, selected for AGL’s Crib Point FSRU project in Australia.