Under the contract, Höegh Esperanza will be utilised in FSRU mode for a minimum period each year, with the balance of the year in LNG carrier mode and/or FSRU mode. The rate structure corresponds to the mode of use, with an anticipated annualised EBITDA contribution when in FSRU mode of approximately US$33 million.
The FSRU Höegh Esperanza was delivered from Hyundai Heavy Industries in April 2018 and entered the contract with CNOOC in June 2018. This high-specification FSRU has both open and closed loop regasification capability, an import capacity of around 6 million tpy of LNG and storage capacity of 170 000 m3 of LNG. It is equipped with a GTT Mark III membrane containment system and dual-fuel diesel-electric propulsion, providing it with full LNGC trading capabilities.
Sveinung J.S. Støhle, CEO & President of Höegh LNG, commented: “We are proud to assist CNOOC in enabling China to import more attractively priced LNG. Following an aggressive coal-to-gas switch, China’s LNG imports look to increase by almost 50% in 2018, and the potential for further increases in LNG imports remains significant. Combined with the sale-and-leaseback financing for FSRU #10 secured earlier this year, this FSRU/LNGC contract for Höegh Esperanza with CNOOC reflects Höegh LNG’s commitment to the Chinese market, and our ambition to remain the preferred partner for future LNG import expansions.”
