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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Updates:

On 28 Jun. 2019, Hoegh LNG announced that reference to its press released on 21 December 2018 regarding the time charter party entered into with AGL.
The Australian company has selected Hoegh Esperanza as the FSRU for the Crib Point project in Victoria Australia, as opposed to Hoegh Giant communicated by the charterer in December 2018. “Hoegh Esperanza has both a closed loop and an open loop system and is because of this considered by AGL to be a better fit for the operational requirements arising from the Environment Effects Statement (EES) currently been undertaken by the Victorian Government. The EES is expected to be concluded no earlier than late H1 2020. Final investment decision (FID) will be taken subject to and following the EES.”
Hoegh Esperanza is currently on contract with CNOOC until June 2021. “Taking into account the time needed for relocation, commissioning and start-up at Crip Point, this fits well with AGL’s planned commercial start-up in H1 2022.”
The charter with AGL is for a period of 10 years and remains conditional on the board of directors of AGL Energy taking a FID for the project. “Hoegh Esperanza is expected to generate an annual EBITDA of $31 million.”
In fact, AGL Energy confirmed that it has delayed the start of operations at its Crib Point LNG import project to the second half of the financial year 2022. AGL expects the outcome of the EES to occur no earlier than late FY20, subject to and following which AGL expects to reach a final investment decision on the project.