GasLog and GasLog Partners partners LP to assume commercial control of LNG carriers operating in the spot market
GasLog Ltd. (“GasLog” or the “Company”) (NYSE:GLOG) and GasLog Partners LP (GasLog Partners or the “Partnership”) (NYSE: GLOP) (together the “Group”) announced today a decision to assume commercial control of their vessels currently operating in the LNG carrier spot market through The Cool Pool.
The Cool Pool is an LNG carrier pooling agreement between GasLog and Golar LNG Ltd. (“Golar”), focusing exclusively on spot fixtures of up to 12 months in duration.
Golar’s declared intention to spin off its spot LNG vessels, coupled with the Group’s belief that robust LNG commodity supply and demand fundamentals will lead to a tightening LNG shipping market and increased multi-year charter opportunities, has led it to decide to withdraw its vessels from The Cool Pool. Assuming commercial control of these vessels will allow the Group greater flexibility and agility in pursuing longer-term time charter opportunities. This will enhance the Group’s ability to deliver on its strategic objective of optimizing fleet employment across spot and term markets and maximizing vessel utilization, earnings and value.
It is anticipated that the five vessels owned by GasLog and the one vessel owned by GasLog Partners currently operating in the spot market will withdraw from The Cool Pool over coming months, based upon current commitments and charter opportunities.
Paul Wogan, Chief Executive Officer of GasLog, stated “I would like to thank our Cool Pool partners for their collaboration over the past four years. However, with Golar’s declared intention to spin off its LNG vessels and a tightening of the LNG carrier market now underway, we believe it is the right time to assume control of our vessel marketing as we seek to place more vessels on longer-term charters to optimize the earnings of our fleet through the cycle. This move is underpinned by increasing levels of customer enquiry in multi-month and multi-year charters.”
Andrew Orekar, Chief Executive Officer of GasLog Partners, stated “The Partnership remains focused on delivering cash flow visibility for our unitholders, and today’s decision to withdraw the GasLog Shanghai from The Cool Pool will enhance our ability to secure an attractive term charter for this vessel.”
About GasLog Ltd.
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 fleet consists of 34 LNG carriers and an additional LNG carrier which was sold to a subsidiary of Mitsui Co. Ltd. and leased back under a long-term bareboat charter. 20 of these vessels (12 ships on the water and eight on order) are owned by GasLog with the remaining 15 LNG carriers being owned by the Company’s subsidiary, GasLog Partners LP.
About GasLog Partners LP
GasLog Partners is a growth-oriented master limited partnership focused on owning, operating and acquiring LNG carriers under multi-year charters. GasLog Partners' fleet consists of 15 LNG carriers with an average carrying capacity of approximately 158,000 cbm.