Höegh LNG settles disputes with charterer of PGN FSRU Lampung
Höegh LNG settles disputes with charterer of PGN FSRU Lampung - Offshore Energy
Höegh LNG settles disputes with charterer of PGN FSRU Lampung
Bermuda-based owner and operator of LNG carriers and FSRUs Höegh LNG has provided an update stating that the previously disclosed disputes and pending arbitrations with the charterer of PGN FSRU Lambung, which is serving Pertamina’s Perusahaan Gas Negara (PGN) off Indonesia, have been settled.
In a statement issued on February 6, Höegh LNG announced that the parties have agreed to settle all arbitrations with immediate effect.
“The parties have entered into an amicable settlement by which the parties have agreed to finally and irrevocably settle all of the disputes, claims and counterclaims between the parties that gave rise to the said arbitration proceedings and agreed to terminate the arbitrations with immediate effect”, Höegh LNG said.
The company further stated that the charter contract for PGN FSRU Lampung remains in full force and effect and each party will cover its own costs related to the terminated arbitrations.
The 170,000 cubic meter FSRU, located 6 kilometers offshore Lampung, Indonesia, has chartered to PGN for a period of 20 years and supplies gas to the electricity sector and industry in West Java and Sumatra.
The FSRU was built by the South Korean shipbuilder Hyundai Heavy Industries in 2014.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.