Höegh LNG Holdings Ltd. announced today it has signed agreements with Wärtsila Oil and Gas and Moss Maritime for its first FSRU conversion project.
The project for a floating storage regasification unit (FSRU) includes the ordering of critical equipment with a long lead time, the company informed in a statement.
“By doing FSRU conversions, Höegh LNG can capture additional business opportunities with start-up at the end of 2017 and in 2018, which our FSRU newbuilding programme cannot meet,” Höegh LNG President and CEO Sveinung J. S. Støhle, said.
FSRU Conversion Premiere at Höegh LNG
By ordering the equipment in advance, the company will reduce the conversion schedule from 18 to 12 months – a total of six months, Höegh LNG explained further.
For the Norwegian based ship owner, this means the planned delivery date for the FSRU conversion project will be the end of 2017.
The LNG Carrier approaches to bring new cargo
“The conversion design is in line with several of the Group’s short-listed projects,” Höegh LNG added.
“Our strong in-house technical expertise and our ability to order critical equipment with limited risk due to our newbuilding programme, enables us to take advantage of the strong fundamentals in the FSRU segment,” the CEO added.
First Conversion Project of an FSRU
Previously, all of Höegh LNG’s floating LNG import terminals were purpose-built, so this is the first time the firm is undertaking a conversion project.
Höegh LNG currently owns four FSRUs: Hoegh Gallant operating in Egypt, Independence in Lithuania, PGN FSRU Lampung in Indonesia and GDF Suez Cape Ann in China.
As well as this, the company owns other vessels currently working as liquefied natural gas (LNG) carriers or under construction.
Earlier this year, the company informed that Hoegh Grace was expected to start as an import terminal in Colombia later this year, but the vessel is currently operating as an LNG carrier.
Höegh LNG is expected to disclose its results for the second quarter of 2016 tomorrow, on August 25.