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Pakistan charters its third FSRU in Höegh LNG deal

Thu 15 Dec 2016 by Karen Thomas

Pakistan charters its third FSRU in Höegh LNG deal
Sveinung Støhle: Höegh has full contract coverage for its nine-FSRU fleet

Norway’s Höegh LNG has signed a 20-year charter deal with Global Energy Infrastructure Ltd (Geil) to supply a floating storage and regasification unit (FSRU) to Karachi’s Port Qasim, from spring 2018.

Geil will develop and manage the country’s first private LNG-import terminal inside Port Qasim’s LNG zone. It signed a long-term LNG supply agreement with Qatargas in September.

Höegh says the charter period carries two five-year extension options and “is expected to generate an average annual EBITDA of around US$36 million”. The two boards also need to approve the project. Construction of the terminal should start early in the new year, aiming for a second-quarter 2018 start-up.

Last week, Höegh confirmed that it has ordered one 170,000m³ FSRU from Samsung Heavy Industries (SHI), with three options, taking delivery of two vessels in 2019 and two in 2020.

Before that deal, Höegh had eight FSRUs on the water and on order. Its seventh FSRU, Hull 2552, is due for delivery early next year, charter to be confirmed. Its eighth, Hull 2865, to be delivered in first-quarter 2018, is fixed to Penco Lirquen in Chile.

The company has not said which vessel it will deploy in Pakistan. However, president and chief executive Sveinung Støhle says the Pakistan deal gives Höegh full contract coverage of its nine-unit FSRU fleet.

Geil Group chief executive Ahmet Caliskan said: “We have already [contracted] 1.3 mta for 20 years’ LNG supply with Qatargas. Furthermore, we are near signing an additional 3 mta of LNG supply with two major LNG producers [and] near to signing the EPC contract for the facility.”

Pakistan joined the LNG-importers club last year, taking in 1.05 million tonnes of LNG via Engro-owned Elengy Terminal Pakistan (ETPL), the US$135 million Port Qasim project that imports gas using Excelerate Energy’s 150,900m³ FSRU Exquisite. This FSRU will import up to 1.5 million tonnes a year (mta) of LNG.

In August, Pakistan contracted a second FSRU from Singapore’s BW Group. Pakistan GasPort (PGPL) has fixed BW’s 170,000m³ newbuilding, SHI-built Hull 2118 for 15 years, to import an initial 4.5 mta through Port Qasim.

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