SPEC LNG and Höegh LNG Reach Agreement on Floating Storage Regasification Unit in Colombia

Sociedad Portuaria El Cayao (SPEC LNG) and Höegh LNG reached an agreement that would allow the firms to take advantage of all the installed capacity of liquefied natural gas (LNG) housed by the Höegh Grace tanker until at least 2031. Following the move, more than half a billion cubic feet per day (mpcd) could be leveraged to strengthen the supply of natural gas in Colombia, according to the companies involved.

Known as a floating storage regasification unit (FSRU), the Höegh Grace is a tanker that has been operating in Cartagena Bay since December 2016 with the capacity to store up to 170,000 cubic meters of LNG and an installed regasification capacity of 533 mpcd — a sum that could help meet a sizable volume of the national demand for natural gas.

“The agreement with SPEC LNG demonstrates how valuable floating regasification terminals can be as reliable and sustainable infrastructure solutions,” said Erik Nyheim, CEO of Höegh LNG, in an announcement. “We are pleased to help Colombia secure access to international LNG markets and ensure the reliability of its energy system.”

The SPEC LNG regasification terminal plays the role of infrastructure agent for receiving, storing, and regasifying liquefied natural gas purchased by its users on the international market as part of the support scheme for electricity generation defined by the Energy and Gas Regulatory Commission (CREG, for its acronym in Spanish).

“This is very good news that comes at a key moment for the country, because in view of the uncertainty scenarios to face the natural gas deficit projected by the Mining and Energy Planning Unit (Upme), this agreement strengthens our project to expand the current regasification capacity from 400 to 533 Mpcd, which would contribute to the supply of natural gas in the medium and long term for Colombia,” said José María Castro, general manager of SPEC LNG, in the announcement.