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UPDATE 1-Hoegh LNG signs letter of intent for 1 FSRU, 3 options at Samsung
December 7, 2016 / 2:03 PM / a year ago

UPDATE 1-Hoegh LNG signs letter of intent for 1 FSRU, 3 options at Samsung

(Adds comments from CEO, share price)

Dec 7 (Reuters) - Hoegh Lng Holdings Ltd :

* says signed a letter of intent (“LOI”) for one firm and three optional FSRUs at Samsung Heavy Industries in South Korea

* says vessels have scheduled delivery dates of two units in 2019 and two units in 2020

* says the 170,000 m(3) FSRUs have regasification capacity of 750 mmscf/day and full trading capabilities

* says complete shipbuilding contract for firm vessel is expected to be signed by mid-january 2017

* Chief Executive Officer Sveinung Stoehle says: “With this agreement with Samsung Heavy, whose selection has been subject to a competitive international tender, Hoegh LNG has taken advantage of a very favourable newbuilding market to position itself for further expansion in the FSRU segment”

* CEO Stoehle says has full contract coverage of its current 8 FSRUs after last week’s award of a 20-year contract in Ghana

* Stoehle says Hoegh LNG is following its strategy to order a new vessel after winning a new award

* Stoehle says he will not give price on the FSRU units but says it’s lower than the previous FSRU order placed last year

* Stoehle says has financing in place on the ninth order: equity of $90-$100 mln, which is on account, and the rest will be financed with bank debt

* DNB Markets said in a note: says fair to assume around $265-$275 mln per vessel

* Hoegh LNG is the worlds biggest operator and owner of floating LNG import terminals; floating storage and regasification units (FSRUs). The LNG is brought from the floating terminal to a power plant on shore

* Hoegh LNG shares are rising 1.9 pct to 93.50 crowns per share compared to a rise of 0.6 pct in the Oslo Bourse benchmark share index Source text for Eikon: ] Further company coverage: (Reporting By Ole Petter Skonnord, editing by Terje Solsvik)

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