Höegh LNG of Norway and STX Pan Ocean (STXPO) said that they have renegotiated the initial agreement and reached a new one whereby Höegh LNG foregoes the right and obligation to take delivery of 50% of the LNG tanker STX Frontier in exchange for an option to buy 100% of the vessel.
Höegh LNG announced in September 2012 that the company will buy 50% of the STX Frontier.
The option expires in 2Q 2013. STXPO confirmed that the transaction was approved by its board of directors.
President and CEO of Höegh LNG Sveinung J.S. Støhle said: “ This new arrangement provides Höegh LNG with increased flexibility in a market which is moving slower than initially expected. We still believe there are interesting possibilities for employment of the STX Frontier, but the obligation for Höegh LNG to buy in to the ownership of the vessel is now swapped with the opportunity to do so, should the commercial parameters fall into place .”
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LNG World News Staff, March 27, 2013