Lithuanian Klaipedos Nafta (KN) has said it plans to acquire the 2014-built floating storage and regasification unit (FSRU) Independence from Norway’s Höegh LNG at the end of its lease agreement. The move will be subject to the approval of the company’s shareholders on February 25, 2022.
The FSRU Independence has been leased since 2014 from Höegh LNG, which won an international tender for the supply of a storage vessel in 2012. Klaipedos Nafta said market consultation and research on the acquisition of the FSRU identified three possible alternatives to the current option: a newly built FSRU, used FSRU, or a converted LNG carrier.
“After taking into account all the elements – the maximum purchase value of the FSRU, technological aspects, and other market conditions – during the procurement procedure, the potential suppliers in principle acknowledged that they could not offer a more cost-effective solution than the current option, namely FSRU Independence,” the company said in a release.
Following the shareholders’ approval, KN said it would inform Höegh LNG of its decision to exercise the option to redeem the FSRU within the timeframe set out in the lease agreement, with a set deadline in December 2022. The purchase contract should be concluded no later than December 6, 2024. The price tag of the Independence is $153.5m, excluding value added tax.