GasLog and GasLog Partners have decided 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, 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 GasLog’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 GasLog greater flexibility and agility in pursuing longer-term time charter opportunities, the company said in its statement.
“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,” GasLog said.
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, CEO 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.”
He added that this move is underpinned by increasing levels of customer inquiry in multi-month and multi-year charters.
Andrew Orekar, CEO of GasLog Partners, added that the Partnership decision to withdraw the GasLog Shanghai from The Cool Pool will enhance our ability to secure an attractive term charter for this vessel.