Hoegh LNG to Buy 50pct of LNG Carrier STX Frontier (Norway)

Höegh LNG has on 28 September 2012 exercised an option to purchase 50% of the LNG carrier STX Frontier.

The vessel is a 153,600 cubic meter LNG carrier with tri fuel, diesel electric propulsion. Höegh LNG expressed their satisfaction with the vessel’s performance after having operated it since its delivery from the Hanjin shipyard in 2010. The vessel will be owned by a 50/50 joint-venture between Höegh LNG and STX Pan Ocean. The vessel will be delivered to the joint-venture between April 2013 and October 2013, upon completion of its current charter to Repsol.

Due to the strong backwardation in the LNG shipping market, Höegh LNG will primarily focus its commercial activities for STX Frontier on the medium term market, i.e., in the 3-5 years time charter market, because this is the segment which offers the best returns. Höegh LNG is currently in discussions with several potential customers, both existing and new, for chartering of the vessel.

President and CEO Sveinung J.S. Støhle says in a comment: “We are very pleased to be adding the STX Frontier to our fleet in cooperation with STX Pan Ocean. The 50% ownership has been acquired at an attractive price, the timing of the delivery by mid next year is in a good window, and we are very confident that STX Frontier will be a solid contributor to Höegh LNG’s net profit starting in October 2013, at the latest.”