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A bullish Höegh LNG chases four new FSRU contracts

Mon 03 Dec 2018 by Selwyn Parker

A bullish Höegh LNG chases four new FSRU contracts
Höegh Esperanza has been in operation for China’s CNOOC company for three months

Prospects for Höegh LNG are on the rise in China and the broader Asia region as the FSRU-based group starts to book revenues from its contract with oil and gas giant CNOOC for its floating storage and regasification vessel (FSRU), Höegh Esperanza, and wins its way into the final selection round for four different, long-term FSRU projects.

Höegh Esperanza has delivered a full quarter of income from the CNOOC contract, reported a bullish president and chief executive Sveinung Stohle late last week during the Q3 financial results, the best to date with earnings before interest, tax and depreciation (EBITDA) up by 19% compared with Q2.

“We continue to see an improving FSRU market,” he said, citing rising global demand particularly in Asia and China. “In a period of 12 months China has emerged as the world’s second-largest LNG importer and [is] a market of high potential for FSRUs.”

On the financial front, the chief executive said the group had already arranged lending commitments for two newbuild FSRUs. Also, Höegh was “fully financed across the fleet at attractive terms.”

The increasingly buoyant LNG market underpins the group’s long-term, FSRU-based strategy, he said. “With our proven operational platform that now includes the highly complementary small-scale LNG offering represented by our shareholding in Avenir LNG, Höegh LNG remains in a strong competitive position for the most attractive FSRU contracts in the market.”

The group has a diverse fleet of floating LNG import terminals, FSRUs and LNG carriers.

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