Norway’s Höegh LNG has amicably settled long-standing disputes and pending arbitrations with the charterer of PGN FSRU Lampung.
.Indonesian LNG importer PT Perusahaan Gas Negara (PGN) holds a 20-year charter on the 170,000 cum FSRU, which has been operating as a 2.7m tonne per year LNG import facility on the southern tip of Indonesia’s Sumatra island since 2014.
In 2021, PGN raised concerns regarding operational issues on the vessels and started arbitration to terminate the charter. At the time, Höegh LNG – which became the FSRU’s owner after acquiring Höegh LNG Partners – claimed that the charterer’s position was without legal merit. Shortly after, Höegh LNG followed with a countersuit. Regardless of the lawsuit and counter-lawsuit, the unit continued to operate according to its charter.
After several years of legal battles, PGN and Höegh LNG agreed to “irrevocably settle all disputes, claims, and counterclaims between the parties that gave rise to arbitration proceedings and agreed to terminate the arbitrations with immediate effect.”
Also, the charter contract for the PGN FSRU Lampung will remain in “full force and effect and each party will cover its own costs in relation to the terminated arbitrations.”
