STL Technology Confirmed for Hoegh LNG

APL (Advanced Production and Loading) has received a purchase order for the design, engineering and supply of two ship sets for Submerged Turret Loading Systems (STL) from Samsung Heavy Industries (Samsung). The end client for the ships sets is Hoegh LNG and the value of the contract is approximately US $20 million.

Offshore LNG terminals is one of two core business areas APL is focusing on, both using the company's leading STL technology. The agreement with Samsung and Hoegh LNG confirms the leading position APL has taken in the growing market for offshore LNG re-gasification terminals.

Hoegh LNG has a long term strategy to develop floating LNG regas solutions worldwide, utilizing shipboard STL connectors for gas equipment for quick connect and disconnect operations suitable for Hoeghs's LNG shuttle and regasification vessels (SRVs). The LNG re-gasification vessels are capable of re-gasifying their LNG cargoes onboard and delivering gas through a STL to be piped ashore.

APL has delivered and installed one offshore LNG terminal for the Gulf of Mexico and is currently working on a second terminal. In addition to these two terminals, APL has delivered three ship sets and has another four on order. These ship sets are similar to the ones ordered by Hoegh LNG. The SRVs for Hoegh LNG are intended to serve the Neptune LNG deepwater port off Boston.

Demand for LNG is growing globally and reliable gas deliveries are a prerequisite for further positive market development. APL is well positioned to take part in this market growth and expects growing business activity from the Terminal business.

APL's final delivery to Samsung will take place during Q1 2009.