Norway's Hoegh LNG Holdings, a provider of specialised vessels for importing liquefied natural gas (LNG), said on Thursday it had entered a binding commitment to supply India's H-Energy with a floating storage and regasification unit (FSRU).
This will be the first FSRU to start operations in India, which has six land-based LNG import terminals.
Hoegh will supply the Indian natural gas company with the FSRU in Jaigarh, south of Mumbai in Maharashtra state, from as early as first quarter 2021, the company said.
The final agreement will be for 10 years with annual termination options after the fifth year, Hoegh added in a statement.
Hoegh said it will allocate one of its available FSRUs currently trading in the LNG carrier market for the project.
"The construction of H-Energy's LNG import project is near to completion, positioning it as a timely gateway to one of the world's highest growing LNG markets," said President and Chief Executive Officer Sveinung Stohle.
The FSRU terminal, which has been delayed on several occasions, is planned to be capable of handing 4 million tonnes per year.
H-Energy's trading office in Dubai signed a sale and purchase agreement with Malaysia's Petronas in 2018 for the delivery of LNG to the Jaigarh terminal.
