Hoegh, PGN team up in FSRU project
Tuesday, October 23 2012 - 11:06 AM WIB
H?egh LNG of Norway and state owned gas distributor PT Perusahaan Gas Negara (PGN) have signed terms of agreemnent for the Floating Storage and Regasification Unit (FSRU) and mooring to form an offshore LNG receiving terminal offshore Labuhan Maringgai, Lampung, Sumatra.
The agreement is for a 20-year charter with two 5-year options to extend for a total period of 30 years. The mooring system will be procured by H?egh LNG, with PGN to pay for and take ownership of it once it is completed.
International law firm Baker Botts L.L.P. represented H?egh LNG in the transaction.
?The parties succeeded in overcoming exceedingly complex issues to sign a project that can now proceed to deliver an important part of Indonesia?s energy infrastructure,? said Baker Botts Partner Russell Wilkinson, who served as lead lawyer for H?egh LNG.
At the request of the government, PGN had decided to change the location of the FSRU from offshore Belawan to offshore Labuhan Maringgai, Lampung, at the south east coast of Sumatra.
H?egh LNG will provide the FSRU, now under construction at Hyundai Heavy Industries in South Korea, as previously agreed, with modifications as required by PGN.
Editing by Dadan Wijaksana