Höegh LNG Holdings Ltd. (“Höegh LNG” or “the company”) advices that its subsidiary, Höegh LNG Ltd., has applied for an LNG infrastructure ownership, operations and development license in Cyprus.
To diversify Cyprus’ energy mix to reach new emission targets for the country’s power production, Cyprus needs to replace the consumption of refined oil products with cleaner LNG as fuel. The plan consists of using one of Höegh LNG’s FSRUs as a fast track solution for the required fuel switching, thereby reducing air emissions, cutting EU emission taxes, enabling savings on fuel costs and reducing electricity price per KWh for local consumers.
The FSRU can stay on location as a bridging solution or for an extended period serving different customers on Cyprus as well as bulk breaking and delivering LNG to other customers in the Mediterranean.
For this planned project, Höegh LNG is working together with VTT Vasiliko Ltd. (“VTTV” – a VTTI Group Company) and H4E GasFuel Ltd. VTTV owns an existing jetty in the Vasilikos Port, at close proximity to the country’s power plants, that can be adapted for the FSRU terminal. Subject to the licence being granted, Höegh LNG expects to be able to start LNG import operations during H1 2021.
Sveinung J. S. Støhle, CEO & President of Höegh LNG states: “This planned project is part of Höegh LNG’s strategy to secure new FSRU contracts for our assets. Even at this early stage I am very pleased with the progress we have made with our local partners VTTV and H4E Gas Fuel to offer a fast track LNG import solution for the Cypriot energy market.”