Hoegh LNG to Supply Cypriot FSRU

Oslo-based LNG vessel operator Hoegh LNG has applied for an LNG infrastructure, ownership, operations and development licence in Cyprus, it said on April 1.

Hoegh LNG's plan, if the licence approved, is to supply a floating storage and regasification unit (FSRU) for a Cypriot LNG import project. This will provide a "fast-track solution" to help the island nation to replace diesel with gas-fired power generation. The FSRU is expected on stream in the first half of 2021.

In December, Cypriot authorities awarded a contract to a Chinese-led consortium to construct the LNG terminal at a cost of $323mn.

Hoegh LNG is working on the project with local partners VVT Vasiliko and H4E Gas Fuel, the first of which owns a jetty at the Vasilikos port where the FSRU will be positioned. 

The LNG project is backed by financiers and is aimed at providing Cyprus with cleaner and lower-cost electricity. The sooner it is brought on stream, the fewer EU penalties Cyprus will incur for its high power emissions.