GasLog announces a charter to Centrica for seven years and places a newbuilding order at Samsung Heavy Industries
GasLog Ltd. has announced the signing of a seven year time charter party with a wholly owned subsidiary of Centrica plc. for a newbuild LNG carrier.
A 180,000 cubic meter LNG carrier (HN 2262) with low pressure two stroke (“LP-2S”) propulsion has been ordered from Samsung Heavy Industries in South Korea, with expected delivery in the third quarter of 2020.
The rate of hire for the Charter is broadly in line with mid-cycle rates.
Further, GasLog and Centrica have separately agreed optionality in relation to the actual vessel to be delivered into the Charter. This optionality allows, instead of HN 2262, either HN 2212 or HN 2274 to be delivered into the Charter, both currently uncommitted GasLog newbuild LNG carriers due for delivery in Q3 2019 and Q2 2020, respectively.
GasLog Partners LP has the right to acquire the vessel delivered into the Charter pursuant to the omnibus agreement between GasLog and GasLog Partners. As a result, GasLog Partners’ potential dropdown pipeline will increase to nine LNG carriers with charter length of five years or longer.
About GasLog
GasLog is an international owner, operator and manager of LNG carriers providing support to international energy companies as part of their LNG logistics chain. GasLog's consolidated owned fleet consists of 30 LNG carriers (25 ships on the water and five on order). GasLog also has an additional LNG carrier which was sold to a subsidiary of Mitsui & Co. Ltd. and leased back under a long-term bareboat charter. GasLog’s consolidated fleet includes 13 LNG carriers in operation owned by GasLog Partners.
