Hoegh LNG wins another FSRU contract for Australian LNG import project

Norway’s floating LNG giant Höegh LNG said Friday it has entered into a time charter party with a unit of AGL Energy to provide a floating storage and regasification unit for the Crib Point LNG import project in Victoria, Australia.

Australian utility AGL is targeting start-up for the LNG project in 2020 – 2021.

The charter is for a period of 10 years and remains conditional on the board of directors of AGL taking a final investment decision on the LNG project and receipt by AGL of key environmental project approvals, Höegh LNG said.

This is the second Australian FSRU contract for Höegh LNG following the award in August this year for the proposed Port Kembla terminal in New South Wales.

The FSRU assigned to the project is expected to generate annual EBITDA of between 29 million and 31 million depending on planned technical modifications that may be specified by AGL before project start-up, Höegh LNG said.

AGL said in a separate statement on Friday that the FSRU vessel to be dedicated to the project would likely be Höegh Giant, which has been built last year by South Korea’s Hyundai Heavy Industries.

“AGL is committed to addressing Australia’s tightening gas supply situation and we believe the AGL Gas Import Jetty will increase certainty around supply and put downward pressure on prices,”  AGL General Manager Energy Supply & Origination, Phaedra Deckart said in the statement.

LNG World News Staff