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GasLog to purchase LNG carriers from BG Group

LNG Industry,

GasLog Ltd has announced an agreement with BG Group affiliate, Methane Services Ltd (MSL), to purchase three LNG carriers from MSL’s fleet and to charter those ships back to MSL for six-year initial terms.

MSL will have the option to extend the term of the time charters for two of the three ships for a period of either three or five years. The ships to be purchased will be chosen by MSL from an agreed group of six sister ships built in 2006 and 2007. GasLog oversaw the construction of all six ships and has provided technical management for the vessels since delivery. The aggregate cost of the purchase is expected to be approximately US$ 468 million.

Each LNG carrier is powered by steam and has a capacity of 145 000 m3. GasLog estimates that when purchases, these ships will represent approximately US$ 426.3 million of incremental contracted revenue over their initial charter terms, and will add over US$ 50 million per annum to GasLog’s earnings.

CEO of GasLog, Paul Wogan, commented: “We are very pleased that we will be able to add these LNG carriers to our fleet as it again demonstrates our ability to be a consolidator in this industry. We know these ships well, having supervised their construction and technically operated them since their delivery from Samsung Heavy Industries. We expect the transaction to be accretive to our earnings and support increased dividend capacity. This transaction also further strengthens our long-standing relationship with BG Group.”

GasLog expects the transaction to close in the first or second quarter of 2014.

Adapted from press release by Katie Woodward

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