Höegh LNG and AIE confirm Port Kembla FSRU charter deal

Norway’s floating terminal projects company Höegh LNG informed that Australian Industrial Energy (AIE) confirmed a long-term FSRU charter deal for its Port Kembla LNG terminal.

On 24 June, Höegh LNG Holdings said in a statement that AIE has lifted its final subjects for the FSRU contract. To remind, the parties signed this contract back in 2021.

The FSRU deal with AIE has a term of 15 years with early termination options for AIE after the fifth year and the tenth year. AIE is entitled to time the start-up of the contract between 2023 and 2025, depending on AIE’s requirements.  

President & CEO of Höegh LNG, Thor Jørgen Guttormsen, said: “We are very pleased that the FSRU contract with AIE has been confirmed and we look forward to working with AIE.”

The contract was signed in November last year when the parties agreed that the FSRU Höegh Galleon will serve the terminal.

The Port Kembla terminal is to be operational by mid-2023 as the first project of its kind in Australia. AIE, a company formed by Squadron Energy, Marubeni Corporation, and JERA, runs the LNG terminal project.

Moreover, AIE and Höegh LNG agreed to collaborate on the future development of a new generation FSRU; the kind capable of receiving clean fuels which can be used as part of future green energy supply chains.

Thus, the terminal is to unlock further opportunities to support a future hydrogen energy industry in Australia.

The Höegh Galleon is the tenth FSRU that joined the Höegh LNG fleet. Samsung Heavy Industries shipyard in South Korea delivered it back in 2019. The vessel has a storage capacity of 170,000 cubic metres, featuring GTT’s Mark III membrane technology. It is 297 meters long and 43 meters wide and has a maximum regasification capacity of 750 million standard cubic feet per day.