Norway’s Höegh LNG on Tuesday informed it has made a decision to put all FLNG activities on hold and focus its resources and capital into the FSRU business.
According to Höegh LNG’s statement, the FSRU business is where the company sees the highest return on invested capital and the most promising market prospects.
The decision comes due to the oversupplied LNG market and a drop in energy and financial markets which have jeopardized investment in new LNG production facilities, including FLNG.
Höegh LNG said it will complete its obligations towards existing customers but will not engage in any new FLNG developments.
However, the company said FSRU market conditions are still encouraging due to new LNG supply growth and increased activity in the segment, both from the producers as well as LNG importers and downstream gas consumers.
Sveinung J.S. Støhle, Höegh LNG’s president and CEO said, “given the overall market outlook for LNG and the current state of the financial markets, we believe focusing solely on FSRUs is financially and commercially the best strategy for Höegh LNG.”
He noted that the company will focus on reaching a goal of 12 FSRUs by 2019.
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LNG World News Staff