Höegh LNG signs FSRU agreement with “Klaipėdos nafta” in Lithuania

Mr. Sveinung Støhle (Höegh LNG's President and Chief Executive Officer) and R. Masiulis (General Manager of ““Klaipėdos nafta”). Photo: Ministry of Energy in the Republic of Lithuania

On the 2nd of March, Höegh LNG entered into a ten year time charter for a floating LNG storage and regasification unit to be used as an LNG import terminal in Lithuania.  The agreement is subject to the approval of the shareholders of AB “Klaipėdos nafta”.  The Lithuanian state owns 70.63% of “Klaipėdos nafta” shares.

Reference is made to Höegh LNG's announcement on 23 January 2012, that the company had the winning tender offer for this project.

Höegh LNG intends to use the second of the three new regasification vessels being built at Hyundai Heavy Industries Ltd. in South Korea for this agreement, which will commence in the second half of 2014.  The time charter is expected to give an EBITDA contribution of about USD 50 million per year.

Höegh LNG's President and Chief Executive Officer, Sveinung Støhle, said in a comment: "We are delighted to have established a long-term relationship with Klaipedos Nafta and we look forward to operating the floating LNG regasification terminal in the Port of Klaipeda."

About Höegh LNG

Höegh LNG is a fully integrated floating LNG services company with almost 40 years experience, offering long-term floating production, transportation, regasification and terminal solutions for the liquefied natural gas (LNG) market.

The company operates a fleet of five LNG carriers and two floating storage and regasification units (FSRUs).  In addition to transporting LNG, these FSRUs act as floating LNG import terminals delivering natural gas to the market.  Höegh LNG has three FSRUs on order at Hyundai Heavy Industries.  The company holds a significant project development portfolio for floating regasification as well as floating LNG production (FLNG).

Headquartered in Oslo, Norway, Höegh LNG has established presence in Singapore, London and Florida. In total the Company employs about 70 office staff and about 350 sea farers.