Image courtesy of Höegh LNG
Höegh LNG’s floating storage and regasification unit Höegh Esperanza operations at the Tianjin LNG terminal in China have not been affected by the Coronavirus outbreak.
The vessel completed its season in LNG carrier mode in mid-November 2019 and returned to Tianjin to resume FSRU operations, Höegh LNG said.
The first cargo was received on November 18 and FSRU mode was successfully entered with the send-out of natural gas. Under the contract with CNOOC, Esperanza earns a higher rate while in FSRU mode than in LNGC mode.
The Coronavirus outbreak has not had any direct effect on the company’s revenues nor operations, including its FSRU in Tianjin, China, which continues to perform according to contract.
However, it seems clear that the outbreak has already impacted the flow of LNG into the Chinese market, and that this affects the market for LNG carriers since in recent weeks rates have softened considerably compared to previous levels, the company said.