Hoegh Charters LNG Terminal to Pakistan's GEIL

Hoegh LNG signed a contract December 15 with Pakistan’s Global Energy Infrastructure Limited (GEIL) for its LNG import project in Port Qasim near Karachi, Pakistan. It will be the first private LNG import terminal in Pakistan but the third at Port Qasim.

The Norway-based shipowner said its contract is for the 20-year charter of a floating regasification and storage unit (FSRU) from among its portfolio of such FSRUs, with two five-year extension options. Construction at the terminal is planned to start early 2017 and expected start-up is 2Q 2018.

GEIL chief executive Ahmet Caliskan said of the charter: "In addition to this major milestone, we have already executed a 1.3mn mt/yr for 20 years LNG supply contract with Qatargas. Furthermore, we are near signing an additional 3mn mt/yr of LNG supply with two major LNG producers as well as nearing to sign the EPC contract for the facility.” The new terminal would give gas purchasers in Pakistan the opportunity to access competitive long term gas supply from reliable LNG producers, he added.

Hoegh said the charter will generate an average annual pre-tax earnings (Ebitda) of around $36mn. It expects to double its fleet of FSRUs to 12 by 2019, having recently commissioned one in Colombia for local firm SPEC, and signed a charter for a customer in Ghana starting by mid-2018.

FSRU Exquisite at Port Qasim (Credit: Excelerate)

Pakistan has had an FSRU in operation since March 2015, Exquisite, chartered out by US shipowner Excelerate to local fertiliser producer Engro. A second FSRU, to be chartered out by shipowner BW Gas to Pakistan GasPort Ltd is to be commissioned  by June 2017. Both terminals at Port Qasim were the result of a government tendering scheme.

A recent report indicated the government wants more terminals developed at Port Qasim and at another port, Gwadar.

Mark Smedley