12 May 2014, News Wires – Hoegh LNG has lined up a deal to use one of its newbuild floating storage and regasification units as a liquefied natural gas import terminal in Egypt.
The Oslo-listed player said in a statement it has signed a letter of intent with Egyptian Natural Gas Holding (Egas) to deploy the Hoegh Gallant FSRU for the work, with the vessel due to start operations in the third quarter.
The FSRU, currently under construction at South Korea’s Hyundai Heavy Industries as part of a four-vessel newbuild effort, would be moored at the Red Sea port of Ain Sokhna in the Gulf of Suez under the proposed five-year contract, with Hoegh also set to supply the topsides.
The contractor said it expected to earn average annual operating profits of about $40 million from the proposed deal, which remains subject to board approval on both sides as well as the official nod from Egyptian regulators.
Hoegh chief executive Sveinung Stohle said “this project will give Egas the fast-track infrastructure to import LNG into Egypt”.
The company has just taken delivery of the second of the newbuilds, Independence, that will work under a long-term charter for Klaipedos Nafta in Lithuania.