Höegh LNG charters Höegh Gallant FSRU to New Fortress

Bermuda-based Höegh LNG Partners has recently entered into a ten-year agreement with U.S.-based gas-to-power developer New Fortress Energy to charter the Höegh Gallant FSRU.

 The ten-year charter will start in the last quarter of 2021.

The Höegh Gallant FSRU will serve New Fortress’ Old Harbour facility in Jamaica. The vessel has a capacity of 170,000 cubic metres.

Additionally, Höegh LNG suspended the existing charter for the FSRU with its subsidiary. This is effective from the start of the new charter with New Fortress.

The new charter rate will be lower than under the existing charter. However, under the suspension agreement, Höegh LNG’s subsidiary shall compensate the company monthly for the difference between the charter until 31 July 2025. This is the expiry date of the existing charter.

After that, the partnership will earn the charter rate agreed with New Fortress for the remaining term of the new deal.

In addition, pursuant to the suspension, certain capital expenditures will be shared 50/50 between Höegh LNG and Höegh LNG Partners.

Finally, the board of directors of the company approved the new charter and the suspension agreement.