GasLog announces charter of newbuild to Total for seven years

GasLog Ltd has announced that it has signed a time charter party with Total Gas & Power Chartering Ltd to charter Hull 2801 for a seven-year period, commencing in mid-2018. There is an option for this period to be extended by a further three years. The vessel is GasLog’s only newbuild vessel that doesn’t have a multi-year contract. It is currently being built in South Korea by Hyundai Heavy Industries, and is scheduled for delivery in 2018.

Following the charter of Hull 2801, all of GasLog’s six remaining newbuild vessels will have long-term charters between 7 and 10 years long. GasLog claims that the charter rate per day for the vessel is in line with the company’s average long-term charter rate, and that the gross contracted revenue from the contract is approximately US$190 million over the seven-year period.

Pursuant to the omnibus agreement between GasLog and GasLog Partners LP, GasLog Partners holds the right to acquire Hull 2801. Securing a seven-year charter on the vessel extends GasLog Partners’ dropdown pipeline of future ships from 12 to 13.

The CEO of GasLog Ltd, Paul Wogan, said: “I am delighted to place our open newbuild on charter with Total for seven years. Total is both a leading and growing player in the global LNG industry and this meets our objective of broadening GasLog's long-term customer base.

“The charter rate is consistent with long-term industry averages, demonstrating the resilience of long term charter rates against the volatility of the short term market. The contracted EBITDA from this vessel means that GasLog has over US$180 million of annualised in-built EBITDA from its eight newbuilds, two of which have already been delivered this year."

Edited from press release by David Rowlands

Read the article online at: https://www.lngindustry.com/lng-shipping/11072016/gaslog-announces-charter-of-newbuild-to-total-for-seven-years-2728/