A floating storage and regasification unit controlled by Hoegh LNG looks set to be tied up to Chinese energy giant China National Offshore Oil Corp (CNOOC) in a midterm deal that mirrors one secured by the Norwegian regas specialist last year.
Brokers report that the 170,000-cbm newbuilding Hoegh Esperanza has been fixed by CNOOC for three years.
The FSRU is set to begin operations in the Chinese port of Tianjin and act as a replacement for an Engie relet, the 143,310-cbm GDF Suez Cap Ann (built 2010), which has been acting as the regas unit there.
TradeWinds understands that a trading rate and an FSRU rate have been agreed on the vessel.
In response to questions, Hoegh referred to its fourth-quarter results statement, where the company said it is “currently in discussions for medium-term employment for the Hoegh Esperanza, which is ultimately intended to serve a 20-year contract with GNL Penco in Chile”.
The company said it has no further comment.
The Hoegh Esperanza is the company’s seventh FSRU. The ship was originally assigned to the Chilean project, which was formerly known as Octopus LNG. But this has been delayed, leaving the vessel without employment on delivery.
If confirmed, the CNOOC deal looks set to copy Hoegh’s charter sealed last year with Spain's Gas Natural Fenosa.
Gas Natural fixed the 170,000-cbm FSRU Hoegh Giant for three years. Hoegh is understood to have substitution rights that would allow it to swap in another vessel.
A market rate with a cap was agreed on the vessel, which Gas Natural is using as a trading vessel. But this would switch to regas hire terms if the unit is used as an FSRU.
The Hoegh Giant, the company’s seventh FSRU, was originally allocated to Quantum Power's project in Ghana that now appears to have stalled.
Hoegh, which is expected to take early redelivery within the next few months of its 170,000-cbm FSRU Hoegh Gallant from Egyptian Natural Gas Holding Co, has been juggling its fleet as projects advance or slow.
The company is tipped to be a main contender for the FSRUs required by developers in Croatia and Sharjah, United Arab Emirates.
In February, company president and chief executive Sveinung Stohle said Hoegh is pursuing “multiple tenders” for its ninth and 10th regas newbuildings, which deliver at the end of this year and in May 2019, respectively.
