Hoegh LNG signs time charter deal with EGAS

Höegh LNG has signed a time charter party contract with EGAS of Egypt for the FSRU Höegh Gallant.

According to a statement by Höegh LNG, the contract is for a period of five years and expected to generate an average annual EBITDA of around USD 40 million.

The company signed in May a letter of intent with EGAS for the charter of the 170.000 cbm Höegh Gallant, which is expected to be delivered from Korea’s Hyundai Heavy  later this week.

The FSRU will start to serve as Egypt’s LNG import terminal by the end of the first quarter 2015, Höegh LNG said.

The LNG project that would allow Egypt to add importing facilities to already existing export facilities has been constantly delayed for two years deepening the energy shortage issues throughout the country.

Declining domestic production has led to gas shortages and diverting of gas set for exports to the domestic market.

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LNG World News Staff; Image: Höegh LNG