Höegh LNG - Heads of Agreement for the PGN led
Medan-Indonesia FSRU project

07.12.2011

Reference is made to the stock exchange notice dated 17 June 2011 where Höegh LNG Holdings Ltd. ("Höegh LNG" or the "Company", ticker "HLNG") announced that it was selected as preferred bidder in the bid for the Medan LNG Floating Storage and Regasification Facilities, North Sumatra, Indonesia.

The Company is pleased to announce that it has entered into binding Heads of Agreement ("HoA") with Perusahaan Gas Negara ("PGN") for the provision of a Floating Storage and Regasification Unit ("FSRU") offshore Belawan, near the city of Medan, in North Sumatra, Indonesia. The HoA is based on the use of Höegh LNG's first FSRU newbuilding due for delivery at the end of 2013 and under construction at Hyundai Heavy Industries in Korea.

The HoA is further based on a 20 year charter party agreement, which is the first agreement of this length in the FSRU market. The charter party and associated project agreements are under completion by the parties. The FSRU for the Medan project will be financed on a project basis and Höegh LNG has appointed Standard Chartered Bank and Bank of Tokyo-Mitsubishi as financial advisors for the project financing.

President and Chief Executive Officer, Sveinung Støhle, explains: "We are satisfied to have reached this important milestone in our negotiations with Perusahaan Gas Negara for a long-term contract for our first FSRU newbuilding. This confirms our strategy to focus on floating regasification terminals and underpins the competitive position of our newbuilding program at Hyundai Heavy Industries."

About Höegh LNG
Höegh LNG is a fully integrated floating LNG services company with almost 40 years experience, offering long-term floating production, transportation, regasification and terminal solutions for the liquefied natural gas (LNG) market. The Company operates a fleet of five LNG marine transportation vessels and two shuttle and regasification vessels (SRVs). In addition to transporting LNG, the SRVs act as floating regasification terminals delivering natural gas to the market. The Company holds a significant project development portfolio for both floating regasification as well as floating LNG production (FLNG). Headquartered in Oslo, Norway, Höegh LNG has established presence in Singapore, London and Florida. In total the Company employs about 70 office staff and about 350 sea farers.

Höegh LNG press release