Höegh LNG – The floating LNG services provider

Höegh LNG leading the way in FSRUs LNG Journal Shipping forum, Lillestrøm 3 June 2015

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Höegh LNG – a snapshot

Provider of floating LNG infrastructure services

Operated LNG carriers since 1973 and FSRUs since 2009

Has developed an FLNG barge solution

Long term contracts generating stable and predictable cash flows

9 vessels/FSRUs in operation – 2 FSRUs under construction

Höegh LNG Holdings (Parent) listed at Oslo stock exchange

Höegh LNG Partners LP (MLP) listed at NYSE

Transportation Liquefaction Regasification / Infrastructure Production Pipeline

Delivery

FLNG LNG carriers FSRU

Low cost barge solution 4 units 5+2 units

Höegh LNG’s part in the LNG value chain

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Floating LNG Import Terminals (FSRUs) – The mechanics

An FSRU is moored close to the market

The LNG is transferred to the FSRU from an incoming LNG carrier moored

side by side

The FSRU regasifies the LNG and sends high-pressure natural gas to

shore

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Head office Other office FSRU operation with local office Firm FSRU project FSRU/LNGC in world-wide trade

Höegh LNG - global presence

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Headquartered in Oslo

Presence in London, Miami, Klaipeda, Egypt, Jakarta and Singapore

Manning offices in Manila, Rijeka and Riga

Site office in Ulsan

World LNG production set to increase

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Large volumes of LNG coming on stream from 2015/2016 onwards

Price of spot LNG expected to decrease further as new production capacity comes online

LNG available either on spot basis or term contracts

Source: Clarksons

• Production of 200 MTPA equals the capacity of about 100 LNG carriers and 70 import terminals

Around 30 FSRU projects in the pipeline and growing

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Owner FSRUs (operation and construction) Business model

Höegh LNG 5+2 Order before contract award - long term contracts

Golar LNG 6+1 Order before contract award - no more FSRUs?

Excelerate 9+0 Order before contract award? - short term contracts

MOL 0+1 Order after contract award

BW Gas 0+2 Order before contract award

Exmar/PR 0+1* Order for specific project?

FSRU operation FSRU operating as LNGC Firm FSRU project HLNG’s FSRU focus for new projects

*Barge FSRU

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Shortest schedule Lowest cost Flexibility to relocate Alternative use as LNG carrier Limited environmental impact Scalable regas capacity up to 7 million tonnes per

year per unit

Why choose FSRUs instead of onshore terminals?

Floating LNG import terminal (FSRU)

Land based LNG import terminal

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Lease term

Land based terminal

FSRU

GDF Suez FSRUs brilliant example of the flexibility FSRUs offer

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Counterparty GDF Suez

Contract length 20 years with 5+5 year options

Project start-up June 2010

GDF Suez Cape Ann GDF Suez Neptune

Both FSRUs originally intended for the Neptune DWP project offshore Massachusetts

As the price of gas in U.S. dropped, the trade did not make sense commercially;

GDF SUEZ Cape Ann is now operating as an FSRU in Tianjin, China

GDF SUEZ Neptune is currently operating as an LNGC

Cape Ann first and only FSRU in China Contract between GDF Suez and CNOOC – Höegh LNG owns and operate FSRU In operation from October 2013

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FSRU preparing to moor alongside jetty in Tianjin

FSRU receiving cargo from LNG carrier

China FSRU

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Perusahaan Gas Negara FSRU

FSRU in operation from July 2014

20 year lease contract plus extension options with Indonesia state controlled PGN

LNG transfer with direct ship-to-ship configuration

Regas capacity of 2.7 mtpa

Established to replace expensive oil products as basis for power production

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The Independence arrived on site in Klaipeda in October 2014

10 year term with Klaipedos Nafta

Project implementation of less than three years

FSRU capacity sufficient to feed whole of Lithuania with natural gas

Energy security was the main driver to establish the terminal

Lithuania FSRU

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Egyptian Natural Gas Holding Company (EGAS)

Located in the port of Ain Sokhna, Red Sea

5 year lease, start-up April 2015

Jetty berthed with side–by-side LNG transfer

Provides 15% of the gas consumed

Established to meet rapid growth in domestic gas demand

Egypt FSRU

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Colombia FSRU

Client: S.P.E.C

Up to 20 year lease contract starting mid 2016

Jetty mooring in Cartagena

Capacity of 500 MMscf/d (3.5 mtpa)

Established to secure backup to hydropower

Will employ Höegh Grace currently under construction at Hyundai Heavy Industries

Strategy to double FSRU fleet by 2019

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Höegh LNG FSRU fleet growth

Strong market fundamentals for FSRUs and high barriers to entry

The latest order at Hyundai increased the fleet to 7 newbuilt FSRUs with state of the art design

One open FSRU scheduled delivery first quarter 2017 being offered to the market

Strategy to double the FSRU fleet by 2019

Negotiating further FSRU orders with yards