Höegh Secures $250M Finance for Lithuanian FRSU

Oslo-listed Höegh LNG has said today that it has received commitment letters of $250 million (USD) to finance the construction of a Lithuanian floating storage and regasification unit (FSRU).

In a statement released today, Höegh said that four banks had sent commitment letters for the project. This financing is subject to credit guarantees by the Norwegian credit agency GIEK and the Korean credit agency K-sure, the company said, which has been provided through an Offer for Guarantee from GIEK and a Letter of Intent from K-sure for their respective portion of the guarantee. 

The financing relates to a ten-year deal made between Höegh  LNG and Klaipedos Nafta in March of this year, through which Höegh will supply FRSUs to the Lithianian Port of Klaipeda LNG terminal. The opening of the terminal is undertaken in a bid to diversify Lithuania's energy supply, specifically away from main supplier Gazprom.

Höegh President and CEO, Sveinung J. S. Støhle, welcomed the financing today and said the $250 million commitment would replace much of the existing financing already in place for the project.

"We are very pleased with the structure of this facility and to have received commitments from our banks for the financing of the Klaipedos Nafta FSRU and with the inclusion of both Norwegian and Korean export credit agencies," he said. "The facility will replace the portion of the existing USD 288 million bridging facility currently dedicated the FSRU."

The deal would mean that the project would continue to move to planned deadlines, he also said.

"The Klaipedos Nafta FSRU project is on schedule in all aspects for a planned start-up in Q3 2014."