Höegh LNG Holdings Ltd. has announced the signing of a Letter of Intent with EGAS of Egypt for a floating storage and regasification unit (FSRU) Time Charter Party contract, according to a company press release.
The contract is for a period of five years and is expected to generate an average annual EBITDA of about $40 million.
The FSRU Höegh Gallant, which is expected to be delivered from the yard later this week, will service the contract, which is set to start by the end of first-quarter 2015, the release said. The company will evaluate interim employment for the FSRU before start of operations in Egypt.
President and CEO Sveinung J.S. Støhle said, “We are delighted to have signed a firm contract with EGAS and been entrusted through this contract to provide strategic important infrastructure that will give EGAS added capacity to serve the Egyptian gas market. This project clearly demonstrates the advantage of FSRUs as the fast-track solution for LNG imports to any market, and we look forward to a long-term relationship with EGAS. The Höegh Gallant will be offered to Höegh LNG Partners L.P. in due time.”
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