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Hoegh LNG to provide FSRU for the Australia LNG import project
2018/12/21
Hoegh LNG has entered into a time charter party with AGL for the provision of a FSRU to be utilized for its proposed LNG imports project at Crib Point, Victoria, Australia. The LNG imports project is targeting start up in 2020 – 2021.
Hoegh LNG announced that it has entered into a time charter party with AGL Shipping, a wholly owned subsidiary of Australian AGL Energy for the provision of a floating storage and regasification unit (FSRU) to be utilized for its proposed LNG imports project at Crib Point, Victoria, Australia.
“The charter is for a period of 10 years and remains conditional on the board of directors of AGL Energy Ltd. taking a final investment decision in relation to the project and receipt by the charterer of key environmental project approvals [as the FSRU will also be part of the environmental assessment process],” Hoegh LNG said in its statement.
The FSRU assigned to the project is expected to generate annual EBITDA of between US$ 29 million and USS 31 million depending on planned technical modifications that may be specified by AGL before project start-up, the Norwegian shipping company added.
In a separate statement, AGL has remarked that its LNG imports project aimed to increase gas supply and help lower prices for families and businesses. “AGL is committed to addressing Australia’s tightening gas supply situation and we believe the AGL Gas Import Jetty will increase certainty around supply and put downward pressure on prices.”
It is likely that Hoegh Giant FSRU, having been constructed last year by Hyundai Heavy Industries will be used for the Australian project.
AGL has said that its LNG imports project would have the potential, if required, to meet all of the households' and businesses' gas needs in Victoria as it will have a capacity of 100 PJ/year. "If all goes to plan, AGL would invest roughly $250 million, commence construction in 2019 and bring the terminal into operation by 2020/21."
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Source(s) GLNGI Staff, Hoegh, Image courtesy of AGL