Baker Botts advises Hoegh LNG on Lampung FSRU financing
Friday, May 23 2014 - 12:57 AM WIB
International law firm Baker Botts has advised Ho?gh LNG on a limited recourse financing of the Lampung LNG floating storage and regasification Unit (FSRU) and mooring project in Indonesia.
The Lampung FSRU will be employed offshore south Sumatra under lease to Indonesia?s state-controlled gas distribution firm PT PGN for a 20 year term that can be extended to 30 years, exceptionally in the market.
Baker Botts said in a statement obtained Friday that the facility includes US$299 million commercial and ECA-backed loan facilities and a $10.7 million Standby Letter of Credit Facility to PT Ho?gh LNG Lampung. Korean export credit agency K-sure provided ECA support.
Norwegian firm Heogh LNG announced on earlier this week that PGN FSRU Lampung project reached a significant milestone on May 17 when the installation and connection of the FSRU and the Tower Yoke Mooring System were finalized on site, 6 km offshore Lampung
The project will commence commercial operation under a 20 year time charter with PGN by the middle of June 2014, the Norwegian firm said.
Editing by Reiner Simanjuntak