Under the terms of the deal, Oslo-based LNG service provider Höegh LNG Ltd. will supply a specialized vessel used for storing and converting LNG back into gas to Indonesia’s PT Perusahaan Gas Negara. The deal also includes a mooring system.
Perusahaan Gas will use the ship, which will be based off the shore of North Sumatra, for 20 years, with two optional five-year extensions. Höegh said in the statement it hopes the vessel, which is being constructed at Hyundai Heavy Industries Ltd.’s shipbuilding facility in Korea, will begin operation next year.
The transaction is structured as a project finance deal, with Standard Chartered Bank and Bank of Tokyo-Mitsubishi UFJ as advisors. According to Höegh, the deal will contribute $40 million in cash flow per year for the first 20 years, and $60 million per year during each optional extension.
Ashurst’s team acting for Perusahaan Gas was led by Singapore partner Philip Thomson. The company’s in-house counsel on the deal was Heri Yusup.
Baker Botts Hong Kong partner Russell Wilkinson advised Höegh, which turned to Jakarta-based Adnan Kelana Haryanto & Hermanto for Indonesian counsel. In-house lawyer Camilla Nyhus-Møller also advised on the deal.