Australia's AGL Charters Hoegh FSRU

Australian utility, AGL, said December 21 that it has signed a long-term charter for a Floating Storage and Regasification Unit (FSRU) for its LNG import project at Crib Point, Victoria.

The charter, from Hoegh LNG, is conditional on a final investment decision, and regulatory approvals including an environmental effects statement (EES) now underway.

AGL's general manager for energy supply and origination, Phaedra Deckart, said the agreement is an important milestone: "This is a big step for the project and we are pleased to enter into this agreement with Hoegh LNG, an industry leader in operation of modern, floating LNG import terminals, with more than 40 years' LNG shipping industry experience."

"The likely vessel Hoegh Giant is a modern, sophisticated vessel, having been constructed last year by Hyundai Heavy Industries," she added: "AGL is committed to addressing Australia’s tightening gas supply situation and we believe the AGL Gas Import Jetty will increase certainty around supply and put downward pressure on prices."

Hoegh LNG also confirmed the charter with AGL Shipping, a wholly owned subsidiary of AGL Energy. Hoegh said the project is targeting start up in 2020 - 2021 for a 10-year period, adding that the FSRU is expected to generate annual pre-tax earnings (Ebitda) of US$29mn-$31mn. Hoegh LNG's CEO, Sveinung Stohle, said: "Our modern FSRU solutions offer our clients the quickest, most cost-efficient and most flexible method of connecting a new market to global LNG trade."

LNG is produced and exported from the provinces of Western Australia, Northern Territory and Queensland - but southeast Australia, including Victoria, are not fully connected by pipe to those three regions' gas supplies.

The banner photo shows Hoegh Giant, courtesy of Hoegh LNG