Höegh LNG Holdings Ltd. announced that it has been selected the preferred bidder for the floating LNG import terminal (FSRU) sponsored by Colbún S.A. and AES Gener S.A. (the “Client”) in Chile.
The term of the contract is 10 years, with an extension option for the Client for a further 5 years. The start-up of the project is scheduled for late 2014. The agreement is expected to generate an average annual EBITDA of approximately USD 41 million for HLNG.
The FSRU will be located in Quintero bay, close to Santiago in Chile, and will supply the Client’s power plants in Chile with natural gas which the Client will procure in the LNG market.
Colbún and AES Gener are among the 2-3 largest power producers in Chile, and both have a fleet of gas fired power plants in the Chilean market. Colbún is listed on the stock exchange in Santiago.
As is customary, the transaction is subject to completion of final documentation and board approval from both parties, and this is already in process and planned to be completed shortly.
Höegh LNG’s President and Chief Executive Officer, Sveinung Støhle, said in a comment: “We are very pleased to have been selected the preferred bidder by Colbún and AES Gener for their new floating LNG import terminal in Chile and look forward to working together with the clients to complete the project. The FSRU for this project is already under construction at Hyundai Heavy Industries in Korea. This award means that Höegh LNG in approximately one year has been able to secure long-term contracts for its entire newbuilding program of 3 FSRU’s, which confirms the Company’s leading position in this segment of the LNG market.”
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