Hoegh changes FSRU plans

 

Jakarta: Norway’s Hoegh LNG Holdings Limited and Indonesia’s Perusahaan Gas Negara (PGN) have revised an agreement to change the location of a floating storage regasification unit that will be provided by Hoegh, and postpone the schedule to start up the unit as well as review the ownership of the mooring system.

In the newly revised contract, the place where the FSRU is to be moored is changed from Medan in the northern part of Sumatra Island to Labuhan Maringgai in the southern part of the island, in addition to which the start up time is delayed by half a year from the end of 2013 to June 2014. PGN is expected to bear an increase in the cost accompanied by the amendment to the agreement.

Meanwhile, Hoegh originally planned to construct and own the mooring system, which keeps a ship in position, but PGN will own the system by returning the construction cost to Hoegh.

The charter period for the FSRU remains unchanged, which is a firm 20 years with two five year options to extend for total period of 30 years.

Last December, Hoegh won competitive bids issued by PGN to supply the FSRU and agreed with PGN this January 2012 to deliver a new FSRU to Medan in the northern part of Sumatra Island. Afterwards, in accordance with the request by Indonesian government Hoegh and PGN agreed to change the place to moor the FSRU from Medan to Labuhan.

Hoegh has already placed order with South Korea's Hyundai Heavy Industries for four FSRUs and will deliver the FSRU to Labuhan at the end of 2013.  [30/10/12]

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