Three time charters tighten availability of Höegh LNG’s fleet

Höegh LNG has inked a deal with Singapore-based commodity trader Trafigura to extend the existing interim time charter for Höegh Gannet by 12 months, and entered into a new interim time charter for Höegh Gallant for 12 months from the redelivery from its current charter at the end of March 2021.

In addition, an agreement has been reached with US LNG producer Cheniere to extend the existing interim time charter for Höegh Galleon by 12 months.

Höegh LNG president and chief executive Sveinung JS Støhle said “We are off to a very good start for 2021 with these charters in place, taking advantage of the seasonally strong LNG carrier market to bridge the interim period with solid counterparties.”

While the rates were not disclosed, Höegh LNG said the “above-mentioned time charters are consistent with the term market rates for tri-fuel, diesel-electric LNG carriers and modestly above those achieved for Höegh Gallant and Höegh Gannet in 2020. The three time charters include extension options for the charterers which can result in back-to-back employment with potential new floating storage and regasification unit (FSRU) awards.”

Höegh LNG’s fleet has secured full contract coverage for 2021, with the exception of Höegh Esperanza which is deployed under an existing charter that expires in June 2021. Höegh LNG aims to secure an extension that potentially covers the period until Höegh Esperanza is planned to be employed on a long-term FSRU contract. Condition on a positive FID, Höegh Esperanza would be deployed as an FSRU for AGL’s Crib Point FSRU project in Australia.