Hoegh Says Ghana Approval Delayed
Oslo-listed tankers and terminals owner Hoegh LNG has warned of possible delays to its Ghana floating storage regasification unit (FSRU) project with Israeli-backed investor Quantum.
“The Quantum Power/Hoegh LNG FSRU [import terminal] project in Ghana remains subject to final governmental approval. As the governmental approval was expected mid-2017 but has not yet been received, the project’s timeline could be affected,” it said in 2Q results August 24.
This would be the third such project in Ghana affected by government permitting delays. The worst delayed – FSRU Golar Tundra – has been idling at anchor for 15 months now some 5 km offshore the port of Tema in Ghana; an update on that is expected in Golar's results on August 30.
Hoegh added: “A positive award [in Ghana] will lead to FID and start-up under the FSRU contract 6 to 12 months following the commencement of the construction work, which includes a pipeline to shore and a spread mooring system to install the FSRU offshore the port of Tema.”
FSRU Hoegh Giant is intended to start a 20-year FSRU contract with Quantum Power in Ghana in mid-2018. The ship is on charter to a “major LNG trader”.
Elsewhere, Hoegh LNG Partners has initialled terms to raise its stake in the two joint ventures that own the FSRUs Neptune and GDF Suez Cape Ann from 50% to 73.5%, for payment of $27.3mn to Japanese partner Mitsui OSK; the acquisition is scheduled to complete end-September 2017. Both FSRUs are on charter to Engie, with Neptune deployed as a Turkish import terminal since December 2016.
Hoegh said the five-partner consortium co-developing an import terminal in Pakistan for local firm GEIL is “well positioned to conclude the final investment decision (FID) in the near future for the construction of the jetty and pipeline.”
Finalisation of a revised environmental process for its delayed Penco FSRU project in Chile is “well under way, with finalisation anticipated towards the end of the year,” noted Hoegh.
Hoegh’s net profits after tax was $8.5mn in 2Q 2017 (down from $11.4mn in 1Q 2017) but more than double its 2Q 2016 $3.6mn profit. The company said it has three FSRUs under construction at two Korean shipyards (HHI and SHI) with scheduled delivery dates in 1Q 2018, 4Q 2018 and 2Q 2019.
Turning to the global market, the firm said that LNG trade worldwide reached 144mn mt in 1H 2017, up 13% year on year, with China, Japan, South Korea, France and Turkey the largest contributors to the extra demand.
Mark Smedley