Höegh LNG to sell off FSRU

Norway

OSLO, August 13, 2015 – Norwegian company Höegh LNG announced on Thursday that it would sell its Höegh Gallant floating storage and regasification unit to its wholly owned subsidiary Höegh LNG Partners in a $370-million deal.

The transaction, which is slated for completion by the end of September, will be financed through a $47-million seller’s credit due in 18 months, as well as a $140-million demand note cancellation from the parent company. The $183-million debt on the Höegh Gallant will remain outstanding.

“Höegh LNG has a strong pipeline of drop-down candidates, making Höegh LNG Partners a robust vehicle for funding our floating storage and regasification unit expansion already under way,” Sveinung J.S. Stohle, president and CEO of Höegh LNG said in a company press release.

The Höegh Gallant has been under a five-year contract with the Egyptian Natural Gas Holding Company at the Ein Sokhna port since April 2015.

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