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Höegh LNG lines up $299m financing for Indon FSRU project

Floating LNG specialist Höegh LNG has received commitment letters from five banks for a $299m limited recourse facility to finance its Lampung floating storage and regasification unit (FSRU) project in Indonesia.

The credit facility consiststs of $237m of long term finance for the FSRU and a further $62m of construction finance for the mooring system. DBS Bank, Korea Development Bank, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank and The Bank of Tokyo-Mitsubishi UFJ, Ltd area all participating in the finance arrangement, 75% of which has a credit guarantee from Korea Trade Insurance Corporation.

Hoëgh president and ceo, Sveinung Støhle said, "We are very pleased with the structure of this facility. Commercial banks expressed strong interest in participating in the financing of this Project and we had to limit the bank group. The Lampung FSRU project is on schedule in all aspects for its planned start-up in June 2014."

Due to start operations in June 2014, the FSRU for the Lampung project is currently under construction at Hyundai Heavy Industries in South Korea. The vessel and has a firm 20 year charter in place with PT Perusahaan Gas Negara plus two five year options . The unit is expected to contribute $40m of EBITDA per annum from its mooring offshore Labuhan Maringgai on the south East coast of Sumatra.

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