Höegh Gallant FSRU Chartered By New Fortress Energy

A subsidiary of New Fortress Energy has entered into an agreement with Höegh LNG Partners for the charter of Höegh Gallant for Floating Storage Regasification Unit (FSRU) operations. The charter is expected to commence from the fourth quarter of 2021, with the duration being ten years. The FSRU would be deployed in Jamaica by New Fortress Energy.

Höegh Gallant FSRU Chartered By New Fortress Energy
The Höegh Gallant FSRU | Image Via: Höegh LNG

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“The new long-term FSRU contract entered into with New Fortress is an important development for the Partnership as it extends the Partnership’s contract coverage and average charter length and broadens our customer base and global footprint. The Höegh Gallant will serve the Old Harbour facility in Jamaica, where its size and performance will enable New Fortress to further optimize its already highly successful operation,” said Sveinung Støhle, the Chief Executive Officer of Höegh LNG.

Currently, Höegh Gallant is chartered by a subsidiary of Höegh LNG Holdings Ltd. (“Höegh LNG”). Which will, upon the start of the new charter, be suspended, informed Höegh LNG Partners. The charter rate for the FSRU with New Fortress Energy would be well in line with the current markets, and lower than its existing charter.

As per the suspension agreement of the existing charter, the subsidiary of Höegh LNG would be compensating with Höegh LNG Partners every month, for the difference between the charter rate earned for the new charter with that of the current charter, which is all set for suspension by the forth quarter of 2021. A modest increase would also be added until the expiry date of the current charter, till 31st July, 2025. After which, the company would be earning the charter rate which has been agreed with New Fortress, for the existing term of the charter.

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The capital expenditures incurred for preparing and relocating Höegh Gallant, prior to the start of the new charter would be shared equally between Höegh LNG Partners an Höegh LNG.

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