Hoegh LNG Awards FPSO FEED Contract to CB&I & Daewoo

Hoegh LNG has awarded Front End engineering and Design (FEED) contracts to CB&I for the topside facilities and to Daewoo Shipbuilding & Marine Engineering (DSME) for the hull, utilities and integration work for Hoegh LNG's FPSO (Floating Production Storage and Offloading) project. In addition a separate agreement has been signed between Hoegh LNG and CB&I for CB&I's Niche LNG Technology. The FEED contract period will run for approximately 9 months, and forms the basis for the building contracts which will be awarded after Hoegh LNG makes its Final Investment Decision (FID) for the first unit planned for Q1 2009.

"The signing of the FEED agreements with CB&I and DSME confirms our commitment to present an optimal design for the Hoegh LNG FPSO," said Sveinung J. Stohle, President & CEO of Hoegh LNG. "With the LNG FPSO in place, Hoegh LNG can offer a complete offshore LNG supply chain. We recognized from the start that building an LNG FPSO is a very complex and challenging project, quite different from LNG carriers or even LNG re-gas vessels, and therefore choosing the right partners and the right technology are critical success factors. We look forward to complete and make this project a success together with our technology partners CB&I and DSME."

The Hoegh LNG FPSO design consists of offshore classed ship-shaped structure and a topside plant with capacity to treat and liquefy a well stream of approximately 3.0 billion cubic meters per year, which will give an annual production of between 1.6 to 2.0 million tons of LNG and approximately 0.4 million tons of LPG/condensate, depending on the specification of the gas stream. The design is such that it can be expanded to 2.4 million tons per year of LNG or reduced to 1.0 million tons per year. The LNG FPSO will have storage capacity of 190,000 cubic meters of LNG and 30,000 cubic meters of LPG/condensate. The first delivery is planned by DSME for early 2012.