GasLog has agreed to charter three of its uncontracted newbuilds that are currently under construction to Methane Services Ltd (MSL), a subsidiary of BG Group.
Under the agreement, MSL will charter three LNG carriers commencing mid-2018 and early 2019 for average initial terms of approximately 9.5 years. These charters are expected to add approximately US$845 million of fixed rate revenue to GasLog’s existing contracted revenue backlog.
The three 174 000 m3 LNG carriers will be fitted with low-pressure, two-stroke propulsion technology. Two of the LNG carriers will be delivered from Hyundai Heavy Industries (HHI), while the third LNG carrier will be delivered from Samsung Heavy Industries (SHI).
MSL also has an option to elect to charter an additional six newbuilds from GasLog, provided that it makes that election within 2015.
Andy Orekar, CEO of GasLog Partners, SAID: “Today’s transaction adds up to nine vessels under long-term contracts to GasLog Partners’ dropdown pipeline, giving us additional visible growth for multiple years. The immediate addition of three firm charters brings our total current pipeline to 15 LNG carriers, which would increase further to 21 vessels if MSL exercises its option for the six additional newbuildings. With this enhanced pipeline of vessels and the agreement by GasLog to compensate for any shortening of existing charters, GasLog Partners continues to be well positioned for future growth.”
Poten Capital Services (UK) advised GasLog on this transaction.
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/21042015/gaslog-agrees-to-charter-three-lng-carriers-to-msl-627/