Höegh LNG – The FSRU services provider

FSRUs - the key to growth for new LNG markets DNB’s 10th annual oil, shipping & offshore conference

02 March 2017

Sveinung J.S. Støhle

President and CEO, Höegh LNG

Forward looking statements

2

This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about

its operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may

occur in the future are forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,”

“forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or the negative of these terms and similar expressions are

intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to

certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes

and results may differ materially from what is expressed or forecasted in such forward-looking statements. You should not place undue

reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh LNG

undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or

otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes

in LNG transportation and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes

in applicable maintenance and regulatory standards; political events affecting production and consumption of LNG and Höegh LNG’s

ability to operate and control its vessels; change in the financial stability of clients of the Company; Höegh LNG’s ability to win upcoming

tenders and securing employment for the FSRUs on order; changes in Höegh LNG’s ability to convert LNG carriers to FSRUs including

the cost and time of completing such conversions; changes in Höegh LNG’s ability to complete and deliver projects awarded; increases in

the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules; changes

to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, in particular, currently, in connection with the

turmoil in financial markets; the success in achieving commercial success for the projects being developed by the Company; changes in

applicable regulations and laws; and unpredictable or unknown factors herein also could have material adverse effects on forward-looking

statements.

Company overview

Markets

Investment considerations

3

Focus for new investments

Höegh LNG – the FSRU company

4

Transportation Liquefaction Regasification /

Infrastructure

FLNG LNG carriers FSRU

2 units 6+41 units

Put activities on hold

in February 2016

LNG value chain:

(1) The Group also has 3 FSRUnewbuilding options at Samsung

14 years

Average remaining

contract length

USD 6.2bn

Revenue backlog

OSE

HLNG NO

Listed OSE since 2011

Market cap USD ~820m

NYSE

HMLP US

Listed NYSE since 2014

Market cap USD ~625m

115 / 500

Onshore / offshore

employees

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Höegh LNG’s current FSRU portfolio

Strategic rationale Location Counterpart

5

FSRUs

PGN FSRU

Lampung To replace expensive liquid oil

products in power generation

Indonesia

Asia USD 40m

Independence Energy diversity and access to

world markets for LNG

Lithuania

Europe USD 47m

SPEC Höegh Grace To offset seasonal shortfalls in

energy production

Colombia

South America USD 42m

EBITDA

GDF Suez

Cape Ann

Operating as LNGC – confirming

FSRU’s flexibility

Worldwide

trade USD 33m

Höegh Gallant Egypt

Africa USD 40m

Uncommitted FSRU #10

(newbuilding)

Quantum

Power

Ghana

Africa

FSRU #7

(newbuilding) USD ~36m

Pakistan

Asia

FSRU #9

(newbuilding) USD ~36m GEI

To cover deficit in power production

by using low cost LNG and to offset

declining domestic gas production FSRU #8

(newbuilding)

Chile

South America USD ~36m

Neptune Turkey

Europe USD 33m

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Höegh LNG’s business model at work

6

Ordered newbuilding

Ordered newbuilding

Long-term contract

Long-term contract

•20 year contract with GEI in Pakistan with startup 2Q 2018

•LOI for one firm plus three optional FSRU newbuildings

•20 year contract with Quantum Power in Ghana with startup 2018

•Signed shipbuilding contract for one FSRU newbuilding with delivery 4Q 2018

Refinanced bond

•Issued new 5yr NOK 1,500 million senior unsecured bond to refinance HLNG01

Recycling of capital

•Sold 51% of Höegh Grace to HMLP

•HMLP raised USD 112 million

Fin

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Statoil4 % Total

4 %

Engie9 %

GNL Penco14 %

Klaipedos Nafta7 %

SPEC17 %

PGN LNG14 %

EGAS3 %

Quantum Power14 %

GEI14 %

Increasing diversification as revenue backlog grows

Revenue backlog of USD 6.2 billion1

14 years average remaining tenor

QP and GEI contracts further diversify

backlog

Each contract for 20 years with an average

EBITDA contribution of USD 36 million annually

No contract exceeding 17% of backlog

55% of backlog from counterparts

operating in investment grade countries

(Norway, France, Colombia, Chile,

Lithuania)

7

Charter backlog1 by charterer

1 Proportionate method

Solid revenue growth trajectory as new FSRUs start contracts

8

Historical numbers

1 Reported figures (JVs by equity method). To be used as illustration only

2 Assumed contract

2

1,502 1,667 1,644 1,644

1,713

40% 36% 36% 36% 40%

4Q15 1Q16 2Q16 3Q16 4Q16

Total assets/adj. eq. ratio

2527 27 26

31

4Q15 1Q16 2Q16 3Q16 4Q16

EBITDA (USDm)

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

US

Dm

T/C revenues existing fleet1

Delivered fleet (end of 2015) Colombia (Höegh Grace) Pakistan (FSRU#9)

Ghana (FSRU#7) Chile (FSRU#8) FSRU#10 (assumed)

Höegh LNG Partners LP set to acquire the remaining 49% stake in Grace

9

Grace transaction funded by equity issue

Issuer Höegh LNG Partners LP (NYSE:

HMLP)

Issue Size 6,588,389 common units / net

USD112 million

Use of

Proceeds

Fund purchase price of 51% of Höegh

Grace and partial repayment of

seller’s credit

Drop down of Höegh Grace

Asset 51% equity interest in owner of Höegh

Grace

Purchase

price

USD 188.7 million less USD 96.9

million in pro-rate deb outstanding

(USD 91.8 million)

Timing Transaction closed 4 January 2017

HMLP unit price development

0

500

1000

1500

2000

2500

10

12

14

16

18

20

22

feb 2016 apr 2016 jun 2016 aug 2016 okt 2016 des 2016

HMLP volume (r.a.) HMLP

S&P500 (rebased) Alerian MLP index (rebased)

LTM performance:

• HMLP: +30%

• Alerian MLP index: +31%

• S&P 500: +23%

Pakistan FSRU project success in practice

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Pakistan project success parameters

Bilateral negotiations

FSRU – under construction

Charter Party – signed HLNG/GEI

Length and value: 20 years, USD 36m

Licenses/permits to build infrastructure

GEI/Pakistan authorities obtained

Financing for infrastructure – in progress

Tolling agreement for terminal capacity

signed consortium/GEI – in progress

EPC agreement for infrastructure, led by

HLNG – in progress

Final board approvals

HLNG/GEI/consortium – in progress

FSRU site

Source: Navionics maps, HLNG, GEI

Easy access

from sea

Jetty and pipeline to be built by consortium of

HLNG, Qatar Petroleum, ExxonMobil, Total

and Mitusbish Corp

16 km offshore pipeline

route, to be constructed

by the consortium

Onshore facilities

Company overview

Markets

Investment considerations

11

LNG volumes expanding on liquefaction capacity additions

LNG demand rose by 17mt, or by

~7%, in 2016

The first year of meaningful growth

since 2011

Liquefaction capacity was 37mt

higher y/y at end-2016; utilization

of newly added capacity to

increase in 2017

35 countries imported LNG in

2016, up from 18 ten years ago

Several countries started

importing LNG in 2016 :

Colombia, Jamaica, Pakistan

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Liquefaction capacity and production 2000 - 2022

Source: Clarksons Platou, Shell LNG outlook 2017

demand

New market entrants clearly prefer FSRUs for their LNG imports

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~80% FSRUs

~65% FSRUs

Mostly land

based

terminals

New markets1

Recent

market

entrants2,3

Established

LNG markets

LNG importing countries: Existing and planned/potential

Already have FSRUs

FSRUs planned or under construction

Have FSRUs, but market is dominated by land based terminals

Source: Cheniere 3Q16 presentation, amended by Höegh LNG

Pipeline of around 40 projects around the globe

Existing

Under construction / awarded

Potential More than 40 projects in pipeline

14

More fragmented competition, but limited orderbook

The orderbook stands at 12

FSRUs, of which 4 are

uncommitted

Uncommitted FSRUs (4

newbuildings, 1 existing

vessel) compare to 14% of

the total fleet and orderbook

of FSRUs

Four existing FSRUs are

serving contracts that are

about to expire, or at

contracts with undetermined

timelines

15

6

8

7

1 1

1

3 1

1

3

1

1

2

0

2

4

6

8

10

12

Höegh LNG Excelerate Golar LNG BW Gas Other

Un

its

FSRU fleet and orderbook1 by owner and employment

On contract Available Committed NB Uncommitted NB

OLT

MOL

Gazprom

Exmar

Maran

Kolin

1 Orderbook defined as firm orders, excluding LOIs, options, conversions

FSRU fleet and orderbook1 by owner and employment

Company overview

Markets

Investment considerations

16

Strong LNG/

FSRU market

fundamentals

Summary: Why invest in Höegh LNG

17

Proven track

record in

securing long-

term contracts

The only pure

play FSRU

company

USD 6.2 billion

contract

backlog and

strong growth

pipeline