Monaco-based LNG shipper GasLog signed two new charter party deals with US LNG export player Cheniere Energy.
Both of the charters are for a firm period of seven years.
To fulfill the charters, two 174,000 cubic meter LNG carriers (HN 2300 and HN 2301) with low-pressure two-stroke propulsion have been ordered from Samsung Heavy Industries in South Korea, with expected delivery in late 2020, GasLog said in its statement.
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, it said.
In addition to the Charters, GasLog has agreed with Cheniere an option for the charter of one or two additional newbuild vessels.
GasLog Partners has the right to acquire the vessels delivered into the charters under a deal between GasLog and GasLog Partners.
As a result, GasLog Partners’ potential dropdown pipeline will increase to 11 LNG carriers with a charter length of five years or longer.
Paul Wogan, chief executive officer of GasLog, stated, “we continue to expand our fleet with highly competitive vessels backed by long-term contracts, while simultaneously diversifying our customer base.”
He added that the company anticipates further incremental shipping capacity will be needed to supply forecast LNG demand growth, and remain confident in its ability to increase its market share at attractive returns.