Hyundai Heavy Industries is expected to bag additional order for LNG-FSRU newbuildings from Norwegian owner.
Hoegh LNG has firmed up a deal to supply a Floating Storage and Regasification Unit in Indonesia.
The Oslo-listed company penned a binding Heads of Agreement with energy firm Perusahaan Gas Negara (PGN) for the Medan LNG terminal in Sumatra.
The project will use the first of the Norwegian company’s two newbuildings ordered from Hyundai Heavy Industries in Korea earlier this year.
The 170,000-cbm unit will join PGN on a 20-year charter when it hits the water towards the end of 2013, the longest deal for an FSRU to date.
Hoegh had already been chosen as the preferred bidder for the project back in June.
Meanwhile, the news could be a good sign for Hyundai Heavy Industries as Hoegh LNG has options on two more FSRUs at the Korean shipbuilding heavyweight.
Sveinung Stohle, CEO of Hoegh LNG, has previously indicated the company would exercise the first option once it had tied up a firm contract for its first newbuilding.
"We are satisfied to have reached this important milestone in our negotiations with Perusahaan Gas Negara for a long-term contract for our first FSRU newbuilding. This confirms our strategy to focus on floating regasification terminals and underpins the competitive position of our newbuilding programme at Hyundai Heavy Industries," said Stohle.
The deadlines for the first two options were extended into the first quarter of 2012 from the final period this year.