Hoegh LNG and Perushaan Gas Negara to Provide FSRU to Northern Sumatra

Hoegh LNG and Perushaan Gas Negara (PGN) signed a final agreement on 25 January 2012 to provide PGN with an FSRU and mooring system offshore Belawan, near the city of  Medan in North Sumatra, Indonesia. The project will employ the first of Hoegh LNG’s new building FSRUs under construction at Hyundai Heavy Industries Ltd in Korea.  The target start-up date is in September 2013.

The Medan floating storage and regasification project will consist of the first of Hoegh LNG’s newbuilding regasification vessel (FSRU) under construction at Hyundai Heavy Industries (HHI) and mooring system.

The project is allocated in the north of Sumatra, at the port of Belawan. The project “scope of work” includes construction , lease and operation of an FSRU with associated mooring system (Mooring Dolphins design) located offshore, and a EPCIC contract for pipeline and necessary infrastructure and tie-in with existing grid connected to the Power Station for Belawan/Medan area.

The agreement is a firm 20 year charter party with two five year options to extend for a total period of 30 years. This is the first agreement of this duration in the FSRU market.  The regasification vessel for the Medan project will be financed on a project basis and Hoegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as structuring banks for the project financing. The EBITDA contribution is approximately USD 40 million per year for the first 20 years and approximately USD 60 million per year for the extension periods, totalling approximately USD 1400 million including the extension periods.

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