Höegh LNG and STX Pan Ocean (STXPO) have renegotiated the initial agreement and reached a new agreement whereby Höegh LNG foregoes the right and obligation to take delivery of 50% of the vessel in exchange for an option to buy 100% of the vessel. The option expires in 2Q 2013.
STXPO confirmed today that the transaction was approved by its board of directors.
President and CEO Sveinung J.S. Støhle says in a comment: “This new arrangement provides Höegh LNG with increased flexibility in a market which is moving slower than initially expected. We still believe there are interesting possibilities for employment of the STX Frontier, but the obligation for Höegh LNG to buy in to the ownership of the vessel is now swapped with the opportunity to do so, should the commercial parameters fall into place.”
