Hamilton, Bermuda, 18 January 2017 - Höegh LNG Holdings Ltd. ("Höegh LNG" or the "Company") is pleased to announce that it has signed a new Shipbuilding Contract (SBC) with Hyundai Heavy Industries Co., Ltd. (HHI) for a new Floating Storage and Regasification Unit (FSRU) for delivery in Q4 2018 (FSRU #9). The FSRU will have a storage capacity of 170,000 m3 and a max regasification capacity of 1,000 MMscf/day and with full trading capabilities.
Reference is further made to the stock exchange notices in December 2016 where Höegh LNG reported it had signed two 20 years FSRU charters with each of Quantum Power ("QP") for the Tema LNG Project in Ghana and Global Energy Infrastructure Limited ("GEIL") for the LNG import project in Port Qasim near Karachi, Pakistan. Both projects have start-up in Q2 2018. (See stock exchange notices dated 1 and 15 December 2016, respectively.)
The Company has spent considerable efforts optimizing its FSRU portfolio, maximizing charter revenues from FSRUs under construction and reducing overall technical risks. The Company has therefore decided to allocate FSRU#7 (HHI HN 2552) to serve the QP charter in Ghana and to allocate FSRU #9 (HHI HN 2909) to the GEI charter in Pakistan. The initial period of the GEI charter from Q2 2018 will be covered by an interim FSRU from Höegh LNG's portfolio until the new FSRU is delivered.
The FSRU newbuilding program that the Company entered into with Samsung Heavy Industries Co., Ltd. (SHI) on 17 January 2017 for one firm (FSRU #10) plus three options is unaffected by the above allocation as the first delivery from SHI is scheduled for May 2019.
Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: "First of all I am very pleased that Höegh LNG through its newbuilding program and market position has been able to establish a contract coverage solution which is in line with our strategy of building new FSRUs. Secondly, I am proud to see that through Höegh LNG's innovative approach and in-house design of our FSRUs coupled with our long-standing relationship with HHI, Höegh LNG has been able to secure a newbuilt FSRU in the shortest possible time. With this order, Höegh LNG now has 10 large size newbuilt FSRUs in operation or under construction, preserving our position as the market leader in the FSRU segment."
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About Höegh LNG:
Höegh LNG provides floating energy solutions and operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions and the strategy is to continue to focus its growth plans in the FSRU market, with the objective of securing long-term contracts with strong counterparties at attractive returns. Höegh LNG is a Bermuda based company with established presence or operations in Norway, Singapore, the UK, USA, South Korea, Indonesia, China, Lithuania, Egypt, Colombia and Turkey. The company employs approximately 110 office staff and 500 seafarers.
Contacts:
Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402 Steffen Føreid, Chief Financial Officer, Telephone + 47 975 57 406
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act or the Continuing Obligations of Oslo Børs
