GasLog updates on Cheniere-chartered LNG newbuilds

Monaco-based LNG shipper GasLog on Wednesday provided further detail on its charter deal agreed with Cheniere for two LNG newbuilds ordered at Samsung Heavy Industries in South Korea.

Each vessel has been chartered on a firm, seven-year period, GasLog said in its statement.

The two vessels will each have a cargo capacity of 180,000 cubic meters of liquefied natural gas, with low-pressure two-stroke propulsion and GTT Mark III Flex+ cargo containment system.

The South Korean shipyard is expected to deliver the vessels in mid-2021.

The deal bumps the company’s vessels on charter to Cheniere up to four newbuilds on order and the GasLog Partners owned GasLog  Sydney, which is currently on a multi-year time charter.

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.

GasLog Partners has the right to acquire the vessels delivered into the charters under the omnibus agreement with GasLog. As a result, GasLog Partners’ potential dropdown pipeline will increase to 12 LNG carriers with a charter length of five years or longer and the partnership is well positioned to announce a further dropdown acquisition within the first quarter of 2019, GasLog said in a statement.

Paul Wogan, CEO of GasLog, noted that the four newbuilds that we now have on order for them will provide further support for their position in US LNG exports.

The company has ordered seven newbuilds in 2018, all equipped with the latest advancements in propulsion and boil-off technology, with six of these newbuilds having long-term charters attached.