Höegh LNG awarded FSRU contract in Colombia
Höegh LNG Holdings Ltd. has been awarded an FSRU contract by Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) for a new LNG import terminal in Cartagena, on the Atlantic coast of Colombia. The contract is subject to SPEC obtaining necessary environmental licenses for the project, which is expected to start operations mid-2016, the company said in its press release.
The 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 contract is expected to generate an average annual EBITDA of USD 40-45 million, depending on the term of the contract. The Company will employ its only non contracted FSRU for the project. The FSRU is currently under construction and will in due course be offered to Höegh LNG Partners LP.
Höegh LNG's President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment "We are delighted to have been awarded the contract with SPEC for the new LNG import terminal in Colombia and are looking forward to complete and start up the project together with our client. Through this agreement we are providing SPEC with the latest and most efficient FSRU regasification technology available in the market, and are committed to the success of the project".
SPEC's General Manager, Jose Luis Montes, said in a statement "We appreciate Höegh LNG's FSRU expertise, which allowed us to present a competitive proposal to the power generators. We expect the LNG import terminal to substantially increase the competitiveness and reliability of the power market in Colombia and are looking forward to a long term relationship with Höegh LNG".
About SPEC
Sociedad Portuaria el Cayao S.A. E.S.P. is a regasification project development company selected to provide LNG regasification and storage services to power plants in the Northern Coast of Colombia. SPEC is 51% owned by Promigas S.A. E.S.P., the largest natural gas distributor and transporter in Northern Colombia. The remaining participation is held by Barú LNG, a foreign private equity fund which holds 49% of SPEC.
About Höegh LNG
Höegh LNG is a provider of floating LNG infrastructure services, offering regasification, transportation and production services under long-term contracts. The company operates a fleet of four floating storage and regasification units (FSRUs) that act as floating LNG import terminals, and four LNG transportation vessels. In addition, Höegh LNG has two new FSRUs on order and has developed a solution for floating LNG production (FLNG). Höegh LNG is a Bermuda based company with established presence in Oslo, Singapore, London, Tampa and Jakarta. The company employs approximately 95 office staff and 500 seafarers.
