Höegh LNG signs Floating Storage agreement in Indonesia

The CEO of Höegh LNG, Mr. Sveinung Støhle and of CEO of PT Perusahaan Gas Negara (“PGN”), Mr. Hendi Prio Santoso, recenrly, in the presence of Norwegian Ambassador to Indonesia, H.E. Mr. Eivind S. Homme, signed an agreement for Höegh LNG  to provide PGN with an FSRU and mooring system offshore Belawan, near the city of Medan, in North Sumatra, Indonesia.

The project will employ the first of Höegh LNG’s new building FSRUs under construction at Hyundai Heavy Industries Ltd in Korea.  The agreement is a 20 year charter party with options to extend for a total period of 30 years. The target start-up date is in September 2013. This is the very first agreement of this duration in the Floating Storage and Regasification Unit market.

The president and Chief Executive Officer of Høegh LNG, Sveinung Støhle, in his speech said that the company is very pleased to be working with PGN to provide the first purpose built FSRU in Indonesia and in Asia. He also said in his company currently is in the process to submit bids for a number of further opportunities. Mr. Hendi Prio Santoso of PGN said he was happy that the two sides after hard work had reached this agreement, which will be important for Indonesia’s future energy supply and economic growth. Ambassador Homme called it yet another important chapter in the strategic partnership between Norway and Indonesia, where business cooperation within the energy and maritime sector are among the key components.

Höegh 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 who has it Headquarter in Oslo, Norway, operates a fleet of five LNG marine transportation vessels and two shuttle and regasification vessels (SRVs).

PT Perusahaan Gas Negara (“PGN”) is the largest natural gas transportation and distribution company in Indonesia and operates a natural gas distribution pipeline network stretching more than 3750 km, supplying natural gas to power plants, industry and commercial businesses.

Leave a Reply

Your email address will not be published. Required fields are marked *