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Dynagas enters new long-term charter agreements for two LNG carriers

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LNG Industry,


Dynagas LNG Partners LP has announced that it has entered new long-term charter agreements for two of its LNG carriers.

Specifically, Gazprom Global LNG Ltd has extended its current charter until 1 May 2018 for the Ob River LNG carrier, which was built in 2007. Furthermore, the partnership has entered into a new long-term time charter agreement with Gazprom Marketing and Trading Pte Ltd for the Ob River, which is expected to begin straight after the vessel is delivered from it its current charter with Gazprom for a period of 10 years.

In addition to this, the partnership has also entered a long-term time charter agreement for Lena River LNG carrier (built in 2013) for the Yamal LNG project. The vessel is expected to support LNG deliveries from the terminal from 2019, and is contracted to be time chartered for a minimum of 15 years.

The CEO of the partnership, Tony Lauritzen, said: “We are pleased to report these two new charters, which are a testament of the partnership’s expertise in harsh environment operations and of the close relationship with our customers. Following these transformative contracts, the partnership now boasts an enviable minimum contracted revenue backlog of US$1.2 billion and a fleet-wide minimum average remaining charter duration of 7.9 years, which we believe will enhance and support its cash flow stability going forward. The current trading price of our common units reflects concern over the sustainability of our current level of distributions per unit. We believe that we are addressing this concern, which is a high priority for us and our unitholders, by entering into these new long-term time charter agreements. Consistent with the Partnership’s growth strategy, we intend to continue to expand our business through vessel acquisitions and by securing additional charter coverage that will further enhance our contract backlog and financial flexibility.”

Edited from various sources by David Rowlands

Read the article online at: https://www.lngindustry.com/lng-shipping/31032016/dynagas-enters-new-long-term-charter-agreements-for-two-lng-carriers-2208/


 

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