Norway’s Hoegh LNG Holdings has signed a new loan deal worth a total of $685m to refinance two of its existing floating storage and regasification units which have recently arrived to start long-term contracts in Germany.
The company said the new facility, which will be split between the 170,000-cbm Hoegh Esperanza and Hoegh Gannet (both built 2018), is for a 10-year period, matching the length of the two regas vessel’s charters with Germany's Federal Ministry for Economic Affairs and Climate Action.
Hoegh LNG did not name the lending banks.
“The loan amount will be applied to repay the existing loan facilities and general corporate use,” the company said.
Hoegh LNG said it expects to complete the refinancing of Hoegh Esperanza in February.
The refinancing of Hoegh Gannet is scheduled to be completed in March-April, the company said, depending on the vessel completing its commissioning for its regas operations in Germany.
Both specialist vessels are among five snapped up by the German government in the wake of Russia’s invasion of Ukraine, to secure alternative energy supply routes for the country over Russian pipeline gas.
Hoegh Esperanza arrived in Wilhelmshaven on 15 December 2022 and is already delivering gas to the grid. The new facility is being operated by Uniper.
Hoegh Gannet is berthed at the new Elbehafen LNG terminal in Brunsbuttel near Hamburg which has been developed by RWE and will be operated by Deutsche Energy Terminal.
It is awaiting a first cargo which is expected to be delivered by the end of February, possibly by the 137,315-cbm LNG carrier Ish (built 1995) which is carrying a shipment loaded at Adnoc’s Das Island plant in Abu Dhabi.
Hoegh LNG chief financial officer Havard Furu said: “We are very pleased with securing attractive, long-term financing for these two FSRUs with a strong group of international banks.