Photo: Hoegh LNG.

Floating player Hoegh LNG has signed deals with Germany to charter two floating storage and regasification units as the European country looks to reduce reliance on Russian gas.

Hoegh said in a statement on Thursday it has signed binding implementation agreements with the German Federal Ministry for Economic Affairs and Climate Action.

Under the deals, Hoegh will charter out two FSRUs from its fleet for operations in Germany for 10 years.

The detailed FSRU contracts are scheduled to be completed by September/October, and FSRU operations are expected to commence at the end of this year, according to Hoegh.

Hoegh did not provide any additional information.

Sources previously told LNG Prime that Hoegh’s uncommitted 170,000-cbm FSRU Esperanza may serve one of the planned terminals in Germany under a charter deal.

Besides Esperanza, the second vessel Hoegh mentioned could be the 170,000-cbm Hoegh Galleon. The firm signed a deal with Australian Industrial Energy (AIE) for this unit last year but the deal is conditional as AIE still needs to take a final investment decision on the Port Kembla project.

 

Germany to host several LNG import terminals

In March, the German government said Uniper and RWE were finalizing charter talks to secure three FSRUs for Germany, while the economy ministry mentioned the fourth unit as well in a recent progress report.

Besides Hoegh, sources also said that Greece’s Dynagas was the second owner in these talks. Dynagas has two newbuild FSRUs in its fleet, namely the 174,000-cbm Transgas Force and Transgas Power.

Germany said it would invest about 2.94 billion euros ($3.11 billion) in these FSRU developments.

The country currently has no large LNG terminals but it will build several facilities as it looks to slash reliance on Russian gas.

These include proposals from German LNG Terminal in Brunsbuettel and Uniper in Wilhelmshaven, which received backing from the government, as well as Hanseatic Energy Hub’s Stade facility and the TES hub in Wilhelmshaven.

 

Reprinted with permission from lngprime.com.