Hoegh's Korean FSRU Shopping Spree

Norway-based shipowner Hoegh LNG has placed two separate orders for ships with South Korean yards in two days.

It has placed a firm order January 18 with Hyundai Heavy Industries (HHI) for a floating LNG import terminal (floating storage and regasification unit) for delivery in 4Q 2018. It will be Hoegh’s ninth FSRU and have a storage capacity of 170,000 m³ and a maximum regasification capacity of 1bn ft³/d (7.5mn metric ton/yr) with full trading capabilities.

“Hoegh LNG has been able to secure a newbuilt FSRU in the shortest possible time,” said its CEO Sveinung Stohle.

Last month Hoegh LNG signed two 20 years FSRU charters, one each with Quantum Power for Ghana, and with GEIL for Pakistan, both for start-up in Q2 2018.  Hoegh now said it has decided to allocate its seventh FSRU to serve the Quantum charter, and this ninth to GEIL. As the initial period of the GEIL charter is from 2Q 2018, it will be covered by an interim FSRU from Hoegh LNG's portfolio.

Last month Hoegh signed a letter of intent (LOI) for one firm and three optional FSRUs from another South Korean shipbuilder, Samsung Heavy Industries. On January 17, it firmed up that LOI into an order for one FSRU and options for three more, and said its SHI order is unaffected by the allocation of its HHI vessels, because the first delivery from SHI is scheduled for May 2019.

The Samsung FSRUs will have a storage capacity of 170,000 m³ and Höegh LNG/Wartsila regas plant design with a regasification capacity of 750mn ft³/d (5.6mn mt/yr). The first will be delivered May 2019, with the optional FSRUs delivered at roughly six month intervals thereafter.

Stohle said the latest orders mean Hoegh LNG has ten large newbuilt FSRUs in operation or under construction, preserving its “market leadership in the FSRU segment.” Last month Hoegh said it planned to double its fleet of six FSRUs to 12 by 2019.

Mark Smedley