Norwegian contractor Höegh LNG has received a contract to supply an LNG floating storage and regasification unit (FSRU) for the Perusahaan Gas Negara (PGN)-led project at Medan in Indonesia.

Hoegh has signed binding heads of agreement with state-owned gas transmission company PGN for the Medan FSRU.

The vessel will be located offshore Belawan near to the North Sumatra provincial capital of Medan.

The company plans to use its first FSRU newbuilding, which is scheduled to be delivered by the second half of 2013, for this project.

Hyundai Heavy Industries (HHI) is constructing the FSRU at its yard in Ulsan, South Korea.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

The deal is based on a 20-year charter party agreement, which is said to be the first of its length in the FSRU market.

The vessel will be financed on a project basis, and HJNG has appointed Bank of Tokyo-Mitsubishi and Standard Chartered Bank as financial advisers for the project financing.

Earlier this year, HHI won a $500m order from Hoegh to build two LNG FSRUs, which included an option for two more similar vessels.

The vessels have a length of 294m, width of 46m and the capacity to store 70,000t of chilled natural gas.

The second of the order’s 170,000m3 LNG FSRUs is scheduled to be delivered by the first half of 2014, and are scheduled to stay operational for 40 years.

In addition, two inert gas systems will be installed on the FSRUs.

Höegh LNG operates a fleet of five LNG marine transportation vessels, and two shuttle and regasification vessels (SRVs). In addition to transporting LNG, the SRVs act as floating regasification terminals delivering natural gas to the market.

Caption: The HHI-built LNG FSRUs will be located offshore Belawan, near to the North Sumatra provincial capital of Medan.