Höegh LNG: Applying for LNG import licence in Cyprus

Hamilton, Bermuda 1 April 2020 – Höegh LNG Holdings Ltd. (“Höegh LNG” or “the company”) advices that its subsidiary, Höegh LNG Ltd., has applied for an LNG infrastructure ownership, operations and development license in Cyprus.

To diversify Cyprus’ energy mix to reach new emission targets for the country’s power production, Cyprus needs to replace the consumption of refined oil products with cleaner LNG as fuel. The plan consists of using one of Höegh LNG’s FSRUs as a fast track solution for the required fuel switching, thereby reducing air emissions, cutting EU emission taxes, enabling savings on fuel costs and reducing electricity price per KWh for local consumers.

The FSRU can stay on location as a bridging solution or for an extended period serving different customers on Cyprus as well as bulk breaking and delivering LNG to other customers in the Mediterranean.

For this planned project, Höegh LNG is working together with VTT Vasiliko Ltd. (“VTTV” - a VTTI Group Company) and H4E GasFuel Ltd. VTTV owns an existing jetty in the Vasilikos Port, at close proximity to the country’s power plants, that can be adapted for the FSRU terminal. Subject to the licence being granted, Höegh LNG expects to be able to start LNG import operations during H1 2021.

Sveinung J. S. Støhle, CEO & President of Höegh LNG states: “This planned project is part of Höegh LNG’s strategy to secure new FSRU contracts for our assets. Even at this early stage I am very pleased with the progress we have made with our local partners VTTV and H4E Gas Fuel to offer a fast track LNG import solution for the Cypriot energy market.”

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Contacts: 

Sveinung J. S. Støhle, President and Chief Executive Officer, Telephone +47 975 57 402 
Håvard Furu, Chief Financial Officer, Telephone +47 991 23 443
Knut Johan Arnholdt, VP IR and Strategy, Telephone +47 922 59 131

About Höegh LNG: 

Höegh LNG operates world-wide with a leading position as owner and operator of floating LNG import terminals; floating storage and regasification units (FSRUs), and is one of the most experienced operators of LNG Carriers (LNGCs). Höegh LNG's vision is to be the industry leader of floating LNG solutions. Its strategy is to develop the business through an extended service offering, with large-scale FSRUs as the main product, and focus on establishing long-term contracts with attractive risk-adjusted returns involving credible counterparts. The company is publicly listed on the Oslo stock exchange under the ticker HLNG, and owns approximately 46% of Höegh LNG Partners LP (NYSE:HMLP). Höegh LNG is a Bermuda based company with established presence in Norway, Singapore, the UK, USA, China, Indonesia, Lithuania, Egypt, Colombia and the Philippines. The group employs approximately 175 office staff and 600 seafarers.