Rome - Höegh LNG announced that the Company has signed a Letter of Intent with Egyptian Natural Gas Holding Company (Egas) for the use of one of its Floating Storage and Regasification Units (FSRUs) under construction at Hyundai Heavy Industries as an LNG import terminal in the port of Ain Sokhna, located on the Red Sea’s Gulf of Suez.
The FSRU will be moored at a jetty which has been finalized as part of Egas scope, with topsides to be supplied by HLNG.
The LOI is for a 5 year FSRU contract expected to generate an average annual EBIDA of around USD 40 million. EBIDA is after local Egyptian tax expected to be paid under the contract. The FSRU is scheduled to start operations in the third quarter of 2014 and the Company intends to use the Höegh Gallant for this project. The LOI is subject to board approval on both sides and the approval of the Egyptian competent authorities. President and Chief Executive Officer Sveinung J.S. Støhle says: “We are delighted to have reached this significant milestone in our agreement with Egas, and look forward to completing this project that will give Egas the fast-track infrastructure to import LNG into Egypt. This project shows again the flexibility and versatility that Höegh LNG’s FSRU solutions bring to the LNG markets”.