Release: H?egh LNG signs 20 year FSRU agreement with PGN
Thursday, January 26 2012 - 03:37 AM WIB
The project will employ the first of H?egh LNG's new building FSRUs under construction at Hyundai Heavy Industries Ltd in Korea. The agreement is a firm 20 year charter party with two five year options to extend for a total period of 30 years.
This is the first agreement of this duration in the FSRU market.
The FSRU for the Medan project will be financed on a project basis and H?egh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as structuring banks for the project financing. The EBITDA contribution is approximately USD 40 million per year for the first 20 years and approximately USD 60 million per year for the extension periods, totalling approximately USD 1400 millions including the extension periods.
The target start-up date is in September 2013.
President and Chief Executive Officer, Sveinung St?hle, says: ?The agreement with PGN to provide the North Sumatra FSRU is a great achievement for H?egh LNG and it confirms that we are in the forefront of the emerging and solid market for FSRUs in Asia. This further underpins our strong competitive position through our new building program at Hyundai Heavy Industries. Currently we have bids in for several similar projects globally and are in the process to submit bids for a number of further opportunities. We expect that the FSRU market will continue its strong growth also in the future. We are very pleased to be working with PGN to provide the first purpose built FSRU in Indonesia and in Asia. This will be an important infrastructure development for Indonesia, and we already looking at similar opportunities for expanding our business in the country."
H?egh LNG is a fully integrated floating LNG services company with almost 40 years of 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 marine transportation vessels and two shuttle and regasification vessels (SRVs). In addition to transporting LNG, the SRVs act as floating regasification terminals delivering natural gas to the market.
The Company holds a significant project development portfolio for both floating regasification as well as floating LNG production (FLNG). Headquartered in Oslo, Norway, H?egh LNG has established presence in Singapore, London and Florida. In total the Company employs about 70 office staff and about 350 sea farers. (ends)