(EnergyAsia, March 15 2012, Thursday) — Norway’s Höegh LNG has signed an agreement to provide Indonesian state utility PT Perusahaan Gas Negara (PGN) with a floating storage and regasification (FSRU) and mooring system off the coast of Indonesia’s North Sumatra province from September 2013.

Höegh LNG, which has contracted South Korea’s Hyundai Heavy Industries Ltd to build the FRSUs, will deploy the first unit for use off the port of Belawan under a 20-year chartering deal with an option for a 10-year extension.

The agreement was signed in Indonesia last month by the CEOs of Höegh LNG, Sveinung Støhle, and PGN, Hendi Prio Santoso, in the presence of the Norwegian Ambassador to Indonesia, Eivind S. Homme.

PGN, the largest natural gas transportation and distribution company in Indonesia, supplies natural gas to power plants, industry and commercial businesses through its pipeline network of more than 3,750 km.

Oslo-based Höegh LNG, which operates a fleet of five LNG marine transportation vessels and two shuttle and regasification vessels (SRVs), is a fully integrated floating LNG services company with almost 40 years of experience in the industry.

On February 13, the company said it signed a second contract awarding South Korea’s HHI to build a 170,000-cubic metre FRSU that can also operate as a standard LNG carrier. The vessel will be delivered for use by Klaipedos Nafta in Lithuania in the second quarter of 2014.

Höegh LNG said it has been granted a new option for a third FSRU with the same specifications with delivery scheduled in the first quarter of 2015.