Höegh LNG: 'All partners committed' to Chile regasification project

Höegh LNG Partners expects the supreme court-ordered revised environmental permitting process for the Penco-Lirquén offshore regasification project in Chile's Biobio region (VIII) to conclude by year-end.

Höegh in May 2015 secured the contract to supply a floating storage and regasification unit (FSRU) for Penco-Lirquén, which is a JV between France's EDF (45% stake), Andes Mining & Energy (45%) and Cheniere (10%).

"Other parts of that project are [also] moving along very nicely," Höegh CEO Sveinung Stohle told analysts Thursday during an earnings call, citing that the associated El Campesino combined-cycle gas-fired power plant is fully permitted.

Adding that, "all the partners are supporting the project," Stohle said: "we believe this is a very solid project. It's a good market, very good counterparties, so we remain fully committed to provide the FSRU as we have agreed with Penco LNG."

El Campesino is backed by a 15-year power-purchase agreement secured in late 2014 to supply Chilean power distributors.

Stohle said that Höegh is also closely monitoring plans for LNG-to-power infrastructure on Colombia's Pacific coast.

Global LNG trade is up 17% so far in 2017, Stohle highlighted.