Höegh LNG Wins Tender for Lithuanian Floating Unit

Höegh LNG has announced that it has been informed that it has the winning tender offer for a floating storage and regasification unit (FSRU) in Lithuania. The company was informed of the winning bid by Klaipedos Nafta today.

Höegh beats out competitors Golar LNG and Excelerate Energy to secure the $500 million contract.

The payment will be spread over a ten-year lease with an EBITDA (earnings before interest, taxes, depreciation, and amortization) contribution of about USD 50 million per year. The lease will begin in the second half of 2014, Höegh says. The company says it intends to use one of two new regasification vessels currently under construction in Korea at the moment.

President and CEO of Höegh Sveinung Støhle welcomed the announcement today.

"We are pleased to have been selected by Klaipedos Nafta as having the winning tender offer for a new floating LNG import terminal in Lithuania and look forward to working together with the company to develop the project," he said. 

"This award confirms the Höegh LNG’s strong position in the FSRU market and this segment will remain our main focus for continued growth in the future."  

The award will take effect after a mandatory "standstill" period dictated by Lithuanian law. The period will end on 7 February 2012 at midnight.