America’s LNG Boom a Boon for Hoegh Says CEO

Now that the U.S. is getting into the business of exporting liquefied natural gas (LNG) , the interest in Floating Storage and Regasification Units (FSRUs) is exploding, said Richard Tyrrell, CEO of Hoegh LNG Partners (HMLP) . ‘To import the commodity you need infrastructure and that’s where FSRUs come in,’ said Tyrrell. ‘Floating is better than land-based terminals because they are half the cost and time to install.’ Höegh LNG Partners, down 4.5 percent year-to-date, is the only listed FSRU pure-play, offering investors the opportunity to invest in a fleet of energy infrastructure assets operating on long-term contracts and built-in distribution growth from a contracted dropdown pipeline. FSRUs effectively function as floating LNG import terminals that are semi-permanently moored off the coast of the end market they are servicing. Höegh LNG Partners has contracts averaging 14 years remaining duration and which cover a dividend that has grown 22 percent since the IPO, with a contracted pipeline of further growth opportunities, none of which have direct commodity exposure. During the first quarter of 2016, Höegh LNG Partners achieved record LNG regas volumes.

Source: TheStreet