Höegh LNG Holdings Ltd. has signed a Floating Storage and Regasification Unit (FSRU) contract with Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) for a new LNG import terminal in Cartagena, on the Atlantic coast of Colombia, as well as a FSRU Time Charter Party contract (TCP) with EGAS of Egypt.
The contract with SPEC is subject to the Colombian company obtaining necessary environmental licenses for the project, which is expected to start operations mid-2016. The SPEC FSRU contract is for twenty years, but includes options for SPEC to reduce the term to five, ten or fifteen years. SPEC will confirm the initial contract term before start of operations.
The SPEC contract is expected to generate an average annual EBITDA of USD 40-45 million, depending on the term of the contract. Höegh will employ its only non-contracted FSRU for the project. The 170 000 m3 FSRU is currently under construction at Hyundai Heavy Industries, and is marked for delivery in early 2015.
The FSRU TCP contract with EGAS is for a period of five years and is expected to generate an average annual EBITDA of around USD 40 million. The FSRU Höegh Gallant, which is expected to be delivered from the yard later this week, will service the contract, which is set to start by the end of the first quarter 2015. The company will evaluate interim employment for the FSRU before start of operations in Egypt.