Höegh LNG is a leading provider of floating LNG infrastructure and services. They have the largest and most modern fleet of floating storage and regasification units (FSRUs) which can provide flexible and scalable LNG import solutions to fast growing markets. Höegh LNG's FSRUs are well-suited to help Vietnam meet its growing gas demand through cost-effective and reliable LNG imports, enabling the continued economic growth and energy transition away from coal.
Höegh LNG is a leading provider of floating LNG infrastructure and services. They have the largest and most modern fleet of floating storage and regasification units (FSRUs) which can provide flexible and scalable LNG import solutions to fast growing markets. Höegh LNG's FSRUs are well-suited to help Vietnam meet its growing gas demand through cost-effective and reliable LNG imports, enabling the continued economic growth and energy transition away from coal.
Höegh LNG is a leading provider of floating LNG infrastructure and services. They have the largest and most modern fleet of floating storage and regasification units (FSRUs) which can provide flexible and scalable LNG import solutions to fast growing markets. Höegh LNG's FSRUs are well-suited to help Vietnam meet its growing gas demand through cost-effective and reliable LNG imports, enabling the continued economic growth and energy transition away from coal.
Höegh LNG is a leading provider of floating LNG infrastructure and services. They have the largest and most modern fleet of floating storage and regasification units (FSRUs) which can provide flexible and scalable LNG import solutions to fast growing markets. Höegh LNG's FSRUs are well-suited to help Vietnam meet its growing gas demand through cost-effective and reliable LNG imports, enabling the continued economic growth and energy transition away from coal.
Höegh LNG - The preferred infrastructure partner for LNG imports
LNG Seminar - November 2019
Norwegian Energy Partners
Baptiste DEBAENE – Business Development Manager
Forward looking statements
This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about Höegh LNG’s operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG’s ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG’s ability to win upcoming tenders and securing employment for the FSRUs on order; changes in Höegh LNG’s ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG’s ability to complete and deliver projects awarded; changes to the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, including the impact from changes in financial markets; changes in the ability to achieve commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements.
2 “Vietnam power crunch threatens future economy”
Financial Time, SEPTEMBER 22, 2019
Vietnamese Market Overview
▪ GDP Growth : 6.4% 2018-2021 – Strongest Economic Growth in all Asia
Vietnam Energy Mix ▪ Strong gas demand for power / industrial needs and fertilizers
▪ Vietnamese Government plan 20 GW of gas fuelled power plant by 2030
1% 6% 3%
18 % 38 %
What are the challenges of LNG import in Vietnam?
1 – Getting safe, reliable, QUICK and COST EFFICIENT energy to sustain
the strong economic growth of today and tomorrow 34 %
2 – Achieving efficient Energy Transition
▪ Move away from coal ▪ Increase the development of renewables energies Hydropower Coal fired power
As of today LNG in the only enabler for renewable energy development Gas fired power Oil fired power Diesel, Renewable Impot Vietnamese Gas Market
▪ Existing gas market
▪ Domestic Gas
▪ Depleted existing domestic gas field
▪ Domestic production remains a priority ▪ Blue Whale ▪ Block B Gas Supply Projection for Viet Nam’s Domestic Reserves under the GMP (World Bank)
▪ Good pipeline and grid network
▪ No gas pipeline import from neighbours countries
▪ No LNG import
▪ Vietnam has one of the lowest Gas in Asia => Need for Cost Effective LNG
▪ The country continues to have one of the lowest power tariffs in
Asia Vietnamese Current Development
▪ Domestic Gas
• Block B • Blue Wales
▪ LNG Imports ▪ PV Gas – Thi Vai Onshore LNG Terminal (1mtpa) ▪ Start-up expected - Q2 2022
▪ PV Gas – Son Mi Terminal
▪ Hai Lin - Onshore Terminal
▪ Start up expected – 2020
▪ Other private developments (Onshore / Offshore)
Vietnam – Key Success Factors for LNG / FSRU Development
▪ Development of a regulatory framework for LNG
− Local regulation (crewing) − Taxation / importation of equipment − Cabotage − Flag regulation − Environment impact assessment
▪ Credit for international investors
▪ Facilitate and harmonize decision making process ▪ Facilitate pipeline access
7 Importing LNG through FSRUs is a good solution for Vietnam.
8 FSRUs a reliable solution
▪ Kaliningrad FSRU inaugurated
in January 2019 ▪ FSRUs arriving and preparing for long-term business in Bangladesh and Brazil ▪ India and Turkey will have new FSRUs installed later in 2019 ▪ Potential new FSRU projects not included (30 - 40) ▪ LNG imports via FSRU has grown from 1% in 2009 to 15% in 2019 out of the entire LNG market
FSRU terminals in operation (24)
FSRU projects under development (10 – 12)
9 FSRUs enabling new markets for LNG
Baseload: Fast track: Economic growth requires Limited infrastructure requirements more energy and/or Availabilities on the market compensate for declining domestic production, e.g. Scalable Vietnam, Pakistan from 0.5 to 6 MTPA
Competitive: Cheaper than building onshore terminal Seasonal / Flexible: Need for flexible solutions to cover rapidly growing seasonal demand, FSRU in operation by end 2018
HLNG FSRU in operation by end 2018
Future projects with HLNG involvement
10 Höegh LNG’s FSRUs ideal for providing multiple LNG services
Small-scale LNG distribution LNG truck distribution
Pipe-to-shore regasified LNG from FSRU
LNG bunkering ISO containers distribution
Ownership 22.5%
11 Typhoon, Monsoon, Tsunami – What solutions? Fortøyningsløsninger ▪ Considerations: − Weather conditions − Water Depth − Cost Vs. availability requirement − LNG suppliers’ requirements
▪ Solutions: − Single / double jetty − SAL System with Yoke − Spread Mooring − Tower Yoke − Submerged Turret Loading − Cost: USD 40 – 150 million
▪ Ship to Ship
12 Why Höegh LNG?
▪ Sector: Maritime energy infrastructure – Floating
Storage & Regasification Units (FSRUs)
▪ Business model: Construction, ownership and
operation of FSRUs on long-term charters with 9 FSRUs in operation 2 legacy LNGCs on 1 FSRU under construction long-term contracts credible counterparts
▪ Largest, most modern and most efficient FSRU
fleet in the market 7.1 years USD 2.9 bn Avg. remaining contract length Revenue backlog
Höegh Gannet 2018 Naturgy Long-term business under development
Höegh Galleon 2019 Cheniere AIE - Conditional on FID
Höegh LNG Partners
Neptune 2009 33** Total
Cape Ann 2010 33** Total
PGN FSRU Lampung 2014 40 PGN
Höegh Gallant 2014 38*** Egas / Gunvor Long-term business under development
Höegh Grace 2016 42 SPEC
FSRU and/or LNGC
Long-term contract Extension option Under construction intermediate charter * LNG carriers ** 100% basis, units are jointly owned *** Currently on LNG charter with Clearlake Shipping (Guvor subsidiary) with annual EBITDA contribution of around USD 16 million. The difference in revenue between the original FSRU contract with Egas and the new LNG carrier time charter for the balance of the charter was recognised in Q4 2018 although Egas continues to compensate for this difference on a monthly basis until the expiration of the original FSRU contract
16 Hoegh LNG in Vietnam
▪ Experience in developing first of a kind project
− Lithuania – Independence − China – CNOOC Tianjin − Egypt – Egas − Columbia – Cartagena − Indonesia – PGN Lampung – 1st offshore project − Australia (Ongoing) Egypt Egas FSRU
▪ Krib Point ▪ Port Kembla
− Indian (Ongoing)
▪ Experience in developing fast track project:
− Egypt – Egas project − 5-month from contract signature to 1st gas − Hoegh was responsible for the EPC of jetty modification and topside China CNOOC Tianjin FSRU
17 Summary
FSRUs should be considered by Vietnam
FSRUs have facilitated LNG imports on five continents and this is set to increase to six with Australia
15% of global LNG imported through FSRUs in 2019
Höegh LNG is the leading FSRU provider in the market
