Höegh LNG : Update on the H-Energy/HLNG FSRU LNG import terminal in Jaigarh, India

Hamilton, Bermuda, 1 February 2021 - Höegh LNG Holdings Ltd. ("Höegh LNG") is pleased to announce that it today has completed and signed all documentation for its 10-year charter with H-Energy and selected the FSRU Höegh Giant to serve this agreement. The binding commitment was announced in a stock exchange notice on 19 November 2020. The agreement is for a period of 10 years with annual termination options after year five.

FSRU Höegh Giant is currently completing its LNGC charter with Naturgy, and will then proceed directly to Keppel Shipyard for minor modifications, in addition to pre-completion of the vessel’s five year periodic class survey, originally scheduled for 2022 as this will improve efficiency and reduce costs. The vessel is expected to be off hire for approximately 40 days in the first quarter of 2021 before the start-up under the H-Energy contract in March 2021.  

Höegh Giant will be the first FSRU operating in India and will deliver natural gas to the 56 km Jaigarh-Dabhol pipeline connecting the LNG import terminal to the national gas grid and will also deliver LNG for onshore distribution through LNG truck loading facilities, as well as reloading LNG onto small-scale LNG vessels for downstream distribution or LNG bunker services.

The H-Energy/HLNG FSRU terminal will allow for the replacement of coal consumption with natural gas at a scale which reduces CO₂ emissions with up to approximately 120 million tonnes, NO_x emissions with approximately 97% and SO_x emissions with approximately 99% over the 10-year period. (Source: GIIGNL. Assumes average annual imports of 3 Mtpa LNG.)

President and Chief Executive Officer Sveinung J.S. Støhle says: "We are delighted to have completed the agreements with H-Energy for the first FSRU LNG import terminal in India, in particular given the strong ESG profile of this project which is in line with HLNG’s vision to provide our customers with the infrastructure to access clean and affordable energy. A roadmap with H-Energy also includes the joint development of the downstream small-scale LNG market in the region, using the FSRU as the terminal for storage and re-loading to smaller vessels. India is a high-growth market and we see clear potential for Höegh LNG to provide additional FSRUs and clean energy solutions to this market over the coming years."

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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.