Höegh LNG Holdings Ltd. today announced that Höegh LNG on 15 December 2016 signed an FSRU contract with Global Energy Infrastructure Limited (“GEIL”) for GEIL’s LNG import project in Port Qasim near Karachi, Pakistan.
The project is the first private LNG import terminal in Pakistan and will be located at the LNG zone in Port Qasim. On 29 September 2016, GEIL signed a long-term LNG supply agreement with Qatargas.
The charter is for a period of 20 years with two five year extension options for charterer and is expected to generate an average annual EBITDA of around USD 36 million. The contract is subject to both parties’ board approval. The construction of the terminal is planned to commence early 2017 and expected start-up is second quarter of 2018. The FSRU will be provided from Höegh LNG’s portfolio of FSRUs, including units under construction, the planned conversion FSRU or from new FSRU’s on order.
Höegh LNG’s President and Chief Executive Officer, Sveinung J. S. Støhle, said in a comment: “We are delighted to have been awarded the contract with GEIL for their new LNG import terminal in Pakistan, and look forward to completing the project together with our client and the other partners. Our modern FSRU solutions offer our client the quickest, the most cost efficient and the flexible way of importing LNG. With this contract we have full contract coverage for our FSRU fleet of 9 units on the water and under construction.”
GEIL’s Group CEO, Mr. Ahmet Caliskan, stated that “We are delighted to conclude this 20-year agreement between GEIL and Höegh LNG. As the leading provider, we have full confidence in Höegh LNG’s modern FSRUs and management capacity. In addition to this major milestone, we have already executed a 1.3 MTPA for 20 years LNG supply with Qatargas. Furthermore, we are near signing an additional 3 MPTA of LNG supply with two major LNG producers as well as nearing to sign the EPC contract for the facility. Being the first private LNG project in Pakistan, this terminal is a landmark energy investment, which will give gas purchasers the opportunity to access competitive long term gas supply from the world’s safest and reliable LNG producers and will help to secure the nation’s energy requirements.”