Maritime company, Höegh LNG Holdings has announced that it has been awarded an floating storage and regasification unit (FSRU) contract with Sociedad Portuaria El Cayao (SPEC), and has signed another contract with EGAS.
The company will work with SPEC and supply an FSRU for a new LNG import terminal in Cartagena, off the coast of Colombia. The contract is for two decades, with options for SPEC to reduce the term to as little as five years. The contract is expected to generate $40 - $45 million depending on the length. Höegh LNG will use its only non-contract FSRU for the SPEC project.
Meanwhile the company has also signed an FSRU time charter party contract with EGAS of Egypt. The contract is for five ears and Hoegh says it is expected to generate $40 million for the company. The FSRU Hoegh Gallant will be delivered from the ship yard later this week and is set to service the contract, which will begin in the first quarter of 2015.
President and Chief Executive Officer Sveinung J.S. Støhle says: "We are delighted to have signed a firm contract with EGAS and been entrusted through this contract to provide strategic important infrastructure that will give EGAS added capacity to serve the Egyptian gas market. This project clearly demonstrates the advantage of FSRUs as the fast-track solution for LNG imports to any market and we look forward to a long term relationship with Egas. The Höegh Gallant will be offered to Höegh LNG Partners L.P. in due time".