Oslo-listed Höegh LNG Holdings has inked a charter agreement with H-Energy for the first floating storage and regasification unit (FSRU) operating in India
Plans call for the deployment of the FSRU Höegh Giant under the agreement, which is for 10 years with annual termination options after year five.
FSRU Höegh Giant is currently completing its LNG carrier charter with Naturgy, and will then proceed directly to Singapore’s Keppel Shipyard for minor modifications in addition to precompletion 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 Q1 2021 before the start-up under the H-Energy contract in March 2021.
Once in service, Höegh Giant 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 coal consumption to be replaced with natural gas at a scale which reduces CO2 emissions by up to approximately 120M tonnes, NOx emissions by approximately 97% and SOx emissions by approximately 99% over the 10-year period, based on annual imports of 3 mta of LNG, according to GIIGNL.
Höegh LNG president and chief executive Sveinung Støhle said, "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 Höegh LNG’s vision to provide our customers with the infrastructure to access clean and affordable energy.” Added Mr Støhle, “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 reloading 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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