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    Hoegh FSRU Secures Charter Deal with Cheniere

Summary

The deal will keep the vessel in employment until it starts work at an LNG terminal in Australia.

by: Joseph Murphy

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Hoegh FSRU Secures Charter Deal with Cheniere

Norway’s Hoegh LNG (HLNG) has secured an interim contract for the supply of its Hoegh Galleon floating storage and regasification unit (FSRU) to US LNG exporter Cheniere Energy.

Cheniere has agreed to hire Hoegh Galleon for 18 months on a fixed daily rate starting in September, after the vessel has been dispatched from Samsung Heavy Industries’ shipyard in South Korea. This will keep the FSRU in employment until the start of its long-term contract at Australian Industrial Energy’s (AIE)’s Port Kembla LNG import project in Australia.

“This charter party will cover the period from delivery of Hoegh Galleon until its planned start-up in Port Kembla,” Hoegh CEO Sveinung Stohle said in a July 12 statement. “Combined with a finalised AIE contract and the project’s final investment decision (FID), Hoegh Galleon will have long-term contract coverage in line with HLNG’s stated strategy.”

The A$250mn ($175mn) Port Kembla terminal is designed to import 1.8mn mt/yr of LNG – enough to cover 70% of gas needs in New South Wales, according to AIE. The project is due to reach FID this year and start production in late 2020.