Höegh LNG remains bullish about prospects for floating storage and regasification units (FSRUs), following a year in which it placed Höegh Gallant in Egypt, secured a 20-year contract for its eighth vessel Hull 2685 in Chile and raised the finance it needed to order its seventh vessel.
In its annual report published today, the company says it will continue to grow its fleet “by at least one FSRU a year” and voiced optimism about prospective demand for these floating import terminals.
“The LNG market is currently long,” it said. “And with additional LNG production capacity under construction, the market is expected to remain long for at least the next five years.
“This situation, in combination with low LNG prices, creates additional demand for LNG and, during the year we have seen an increase in interest from new potential FSRU customers. Over the next five years our expectation is that three to four FSRU projects will be awarded each year.”
However, a spokeswoman has denied reports from brokers that Höegh has already booked its ninth FSRU, in a contract agreed in February with South Korea-based Hyundai Heavy Industries (HHI) for a 170,000m³ vessel to be delivered in mid-2018.