Watson Farley & Williams (“WFW”) has advised Genesis Energias, S.A (“Genesis”) on the chartering of the ‘BILBAO KNUTSEN’, which shall be used as an LNG floating storage unit (“FSU”) for the loading, storage and discharging of LNG, as part of an LNG-to-power project in Honduras.
The ‘BILBAO KNUTSEN’ is an LNG carrier built in 2004 and owned by Norway’s Knutsen Group. The vessel is to be converted into an FSU for the project by HD Hyundai Marine Solution, a subsidiary of HD Hyundai Group.
Fossil fuels for power generation
The project is envisioned to help Honduras switch away from fossil fuels for power generation
Genesis will import LNG internationally through the LNG terminal it is currently constructing in Puerto Cortes on Honduras’ Caribbean coast using the “BILBAO KNUTSEN” as an FSU for the onward transmission of LNG to the Brassavola Thermal Power Plant.
The project is envisioned to help Honduras switch away from fossil fuels for power generation to cleaner energy, reducing both the country’s production costs and boosting industrial development in the area.
Strength and depth of maritime expertise
The WFW London Maritime team that advised Genesis was led by Partner - Joe McGladdery, working closely with Counsel - Amelia Reffold. Asset and Structured Finance Partner - Maren Brandes advised on certain German law aspects of the transaction and tax advice was provided by Partner - Richard Stephens.
Joe McGladdery commented: "We are very pleased to have advised Genesis on this important transaction which should play a key role in Honduras’ transition towards cleaner energy. This was an innovative transaction which highlights the strength and depth of our maritime expertise generally, as well as our particular experience advising on chartering-related matters."
