Flex LNG announces new time charter agreement

Flex Constellation, built 2019, is an advanced 173 400 m3 LNG carrier with ME-GI two stroke propulsion and partial reliquefaction system (PRS), making her ideal for the current requirements. She is currently on a 10-month TC with a large Asian utility and asset backed LNG trader until end of 1Q25. The current charterer is a subsidiary of the new charterer.

The existing charterer of Flex Constellation did not exercise its one-year extension option. Hence, Flex Constellation will be open for trading spot and/or short-term TC from the end of 1Q25 for a period of approximately 12 months before commencing this new 15-year TC.

Øystein Kalleklev, CEO of Flex LNG Management, commented: “We are pleased to announce another substantial long-term charter, this time for Flex Constellation which will be fixed for a firm period of minimum 15 years from 2026 – 2041 with possibility of extension to 2043. We really much appreciate returning customer who appreciate the service and quality level that Flex LNG delivers.

“With this TC, we further increase our backlog and earnings visibility with a charter rate for the new period in line with the existing charter rate for the vessel. Following this agreement, Flex LNG has in total 64 years of firm backlog which may increase to 98 years in the event charterers utilise all their extension options.

“Consequently, Flex LNG is very well positioned to navigate near term market weakness with 11.2 out of our 13 ships on firm TC for the next year at an average TC rate of close to US$80 000/d. Additionally, we also have one ship on variable hire until minimum 3Q25, but where the charterer has the option to extend this variable hire to 2030. Hence, close to 90% of our income days for 2025 is already covered with backlog stretching all the way into 2041.”

Read the article online at: https://www.lngindustry.com/lng-shipping/02122024/flex-lng-announces-new-time-charter-agreement/