Bermuda-based owner and operator of LNG carriers and FSRUs Höegh LNG has provided an update stating that the previously disclosed disputes and pending arbitrations with the charterer of PGN FSRU Lambung, which is serving Pertamina’s Perusahaan Gas Negara (PGN) off Indonesia, have been settled.
In a statement issued on February 6, Höegh LNG announced that the parties have agreed to settle all arbitrations with immediate effect.
“The parties have entered into an amicable settlement by which the parties have agreed to finally and irrevocably settle all of the disputes, claims and counterclaims between the parties that gave rise to the said arbitration proceedings and agreed to terminate the arbitrations with immediate effect”, Höegh LNG said.
The company further stated that the charter contract for PGN FSRU Lampung remains in full force and effect and each party will cover its own costs related to the terminated arbitrations.
The 170,000 cubic meter FSRU, located 6 kilometers offshore Lampung, Indonesia, has chartered to PGN for a period of 20 years and supplies gas to the electricity sector and industry in West Java and Sumatra.
The FSRU was built by the South Korean shipbuilder Hyundai Heavy Industries in 2014.