Hoegh LNG awarded FSRU contract in Colombia

Posted by Pedro Gonzalez, CPA on Nov 4, 2014

Hoegh-LNG Strikes Deal in Colombia

Höegh LNG is a provider of floating Liquified Natural Gas (LNG) services under long-term contracts. The company owns and operates floating storage and regasification units (FSRUs) which act as floating LNG import terminals, and LNG carriers which transport the LNG to its markets.

Höegh LNG Holdings Ltd. has signed a FSRU contract with Sociedad Portuaria El Cayao S.A. E.S.P. (SPEC) for a new LNG import terminal in Cartagena, on the Atlantic coast of Colombia. The contract with SPEC is subject to the Colombian company obtaining necessary environmental licenses for the project, which is expected to start operations mid-2016. The SPEC FSRU contract is for twenty years, but includes options for SPEC to reduce the term to five, ten or fifteen years. SPEC will confirm the initial contract term before start of operations.