Hoegh Pulls Plug on Pakistan FSRU (with Update from Hoegh)

Hoegh said November 24 it "has today informed GEI that it has concluded to terminate the FSRU [Floating Storage and Regasification Unit] charter agreement signed December 15 2016."

Hoegh acknowledged in its 3Q 2017 results last week that there were considerable uncertainties over the project – which was to have become Pakistan's third LNG import facility – and that it was considering its options under the contract with GEI. When NGW first went to press, it had not said what these might be. But in response to a query from NGW whether jt was taking legal action against GEI or seeking some form of penalty payment, Hoegh LNG responded: "We are not taking legal action."

Hoegh had said November 16 that "LNG sellers" – in this context understood to be Exxon, Total, Qatar Petroleum and possibly Mitsubishi – had withdrawn from a consortium with GEI to develop the project.  Bermuda-registered Hoegh, which was to have been a consortium member too, now says it is involved in several ongoing processes for alternative employment for the unit "FSRU #9" that was originally intended for the GEI project, and that it "remains optimistic that firm FSRU employment will be in place before delivery end 2018."