The Indonesia floating storage and regasification project will consist of the first of Höegh LNG’s newbuilding regasification vessels (FSRU) under construction at Hyundai Heavy Industries (HHI) and a mooring system.

The project “scope of work” includes construction, lease and operation of an FSRU with associated mooring system located offshore. The agreement is a firm 20 year charter party with two five year options to extend for a total period of 30 years. This is the first agreement of this duration in the FSRU market. 

The regasification vessel for the Indonesia project will be financed on a project basis and Höegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as structuring banks for the project financing. The EBITDA contribution is approximately USD 40 million per year for the first 20 years and approximately USD 60 million per year for the extension periods, totalling approximately USD 1400 million including the extension periods.