Nakilat and Höegh LNG form strategic alliance for FSRU project
18 July 2017
Nakilat and Höegh LNG signed a Memorandum of Understanding (MoU) today to form a strategic alliance with the objective of exploring collaboration on the development of new Floating Storage and Regasification Unit (FSRU) projects. This comes as part of its diversification strategy for opportunities and solutions to delivering liquefied natural gas (LNG) to the global markets. Qatar is the world’s largest producer of LNG and is aiming to increase its annual production to more than 100 million tonnes in the coming years, with Nakilat being the essential transportation link of the LNG supply chain. Höegh LNG is the world’s largest provider of FSRUs with a fleet of 10 units, including those under construction.
FSRU is the leading-edge technology for the LNG market. It is essentially a floating LNG import terminal, costing less than half of an onshore facility. This technology has become a strategic solution for countries without LNG receiving terminal infrastructure, enabling better accessibility of clean energy. Among the significant benefits of FSRU are the ability to serve attractive markets which would otherwise not be able to utilize natural gas, require half the time and cost to construct, pose lesser risks and have the flexibility to be relocated or used as an LNG carrier.
Nakilat’s Managing Director Eng. Abdullah Al-Sulaiti said, “Nakilat views this strategic alliance with Höegh LNG, a leading owner and operator of FSRUs, as a huge stepping stone for further growth. This agreement paves the way for greater business opportunities to create substantial platforms for local players to get involved in the project, exposing them to innovative technologies and expertise that would be beneficial to their growth and the development of Qatar’s energy and maritime industry. Nakilat is always looking at opportunities of diversifying solutions to deliver clean energy worldwide, supporting the rising global demand of LNG.”
Mr Sveinung J.S. Støhle, President and CEO of Höegh LNG said, “We are pleased and very proud to be partnering with Nakilat, the largest LNG carrier company and look forward to jointly contribute to expanding the global market for LNG. The alliance with Nakilat is a confirmation of Höegh LNG’s leading position in the FSRU market and offers the opportunity to further accelerate our market presence beyond the projects we undertake on a sole basis.”