Höegh LNG Partners Delays FSRU Purchase Plans

NYSE-listed Höegh LNG Partners has opted to suspend its earlier plans to acquire additional interest in joint ventures owning floating storage re-gasification units (FSRUs) Neptune and GDF Suez Cape Ann.

Under a term sheet signed in late August 2017, the partnership was supposed to purchase 23.5% of the shares of each of SRV Joint Gas and SRV Joint Gas Two, the owners of the two vessels, from Japan’s Mitsui O.S.K. Lines (MOL).

Additionally, the company was to acquire 23.5% of the outstanding shareholder loans from MOL aggregating USD 1.5 million.

However, the charterer of the two FSRUs “has raised certain performance claims with respect to the vessels,” according to Höegh LNG Partners.

Although the partnership would be indemnified by its sponsor, Höegh LNG Holdings, for its share of the cash impact of any settlement with the charterer with respect to such claims, the partnership has informed MOL of its intention “to suspend the acquisition pending further resolution of this matter.”

The company added that the closing of the transaction continues to remain subject to the execution of a definitive purchase agreement.

The partnership originally expected the transactions, set to be undertaken through its subsidiary Höegh LNG Partners Operating LLC, to close by September 30, 2017.

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