Monaco-based GasLog Ltd. has announced the signing of two new charter party agreements, each for a firm period of seven years, with a wholly owned subsidiary of Cheniere Energy, Inc.
To fulfil the Charters, two 174,000 cubic metre LNG carriers (HN 2300 and HN 2301) with low pressure two stroke (“LP-2S”) propulsion have been ordered from Samsung Heavy Industries in South Korea, with expected delivery in late 2020.
The rate of hire for the Charters is broadly in line with mid-cycle rates and delivers returns in line with GasLog’s financial strategy, the company said on Monday, August 20.
In addition to the Charters, GasLog has agreed with Cheniere an option for the charter of one or two additional newbuild vessels.
GasLog Partners LP has the right to acquire the vessels delivered into the Charters pursuant to the omnibus agreement between GasLog and GasLog Partners. As a result, GasLog Partners’ potential dropdown pipeline will increase to 11 LNG carriers with charter length of five years or longer.
Paul Wogan, Chief Executive Officer of GasLog, said: “I am delighted to announce a significant expansion of our relationship with Cheniere, a high-quality counterparty and a leader in developing the US LNG export industry. Cheniere’s decision to partner with GasLog is a vote of confidence in our ability to deliver a differentiated service to our customers, founded upon our core principles of operational excellence and an uncompromising approach to safety.
“We continue to expand our fleet with highly competitive vessels backed by long term contracts, while simultaneously diversifying our customer base. We anticipate further incremental shipping capacity will be needed to supply forecast LNG demand growth, and remain confident in our ability to increase our market share at attractive returns.”