Lithuania: Höegh LNG & Klaipedos Nafta Sign FRSU Deal

Norwegian-based Höegh LNG and Lithuania-based Klaipedos Nafta have signed a ten-year deal for one of Höegh's floating storage and regasification units (FSRUs) to be used as an LNG import terminal in Lithuania.

The deal comes after a successful bid for the project from Höegh in January, when it scored the winning bid for a $500 million contract over rival bidders Golar LNG and Excelerate Energy.

Pending approval from Klapeidos Nafta's shareholders on the agreement, Höegh LNG will begin activity on the project in the second half of 2014. Höegh says it will use the second of three of its regasification vessels which is under construction now at Hyundai Heavy Industries in South Korea for the project.

Höegh's President and CEO Sveinung Støhle said the company was delighted to work with Klapeidos on the project today.

"We are delighted to have established a long-term relationship with Klaipedos Nafta and we look forward to operating the floating LNG regasification terminal in the Port of Klaipeda," he said in a statement today.