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GasLog Ltd. (“GasLog”) is pleased to provide further detail on the new charter party agreements (the “Charters”), each for a firm period of seven years, with a wholly owned subsidiary of Cheniere Energy, Inc. (“Cheniere”), originally announced on December 26, 2018.

To fulfil the Charters, two 180,000 cubic meter LNG carriers (HN 2311 and HN 2312) with low pressure two stroke (“LP-2S”) propulsion and GTT Mark III Flex Plus cargo containment systems have been ordered from Samsung Heavy Industries in South Korea, with expected delivery in mid-2021. The Charters build on GasLog’s existing relationship with Cheniere, which now totals four newbuilds on order and the GasLog Partners LP (“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.

GasLog Partners 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 12 LNG carriers with 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.

Paul Wogan, Chief Executive Officer of GasLog, stated, “I am delighted to build further on our existing relationship with Cheniere. The four newbuilds that we now have on order for them will provide further support for their leading position in US LNG exports.

We announced seven newbuild orders in 2018, all equipped with the latest advancements in propulsion and boil-off technology. Six of these newbuilds have long-term charters attached, cementing our status as a leading owner and operator of LNG carriers. Attractive LNG shipping market fundamentals, the strong liquidity position of the GasLog group and increasing debt capacity due to scheduled amortization underpin the funding strategy for our newbuild program. As a result of our activities in 2018, we have made substantial progress towards meeting our target of more than doubling consolidated EBITDA over the 2017-2022 period.”

Press Releases: gaslogltd.com

Photo Courtesy: dynagaspartners.com

The post Gaslog On Long-Term Charters With Cheniere And Newbuilding Orders At SHI appeared first on Maritime Manual.

The decision was made after Cheniere Marketing International LLP, a wholly owned subsidiary of Cheniere Energy, exercised options to charter two additional newbuilds from GasLog.

As disclosed, each ship has secured a firm charter period of seven years.

The options were part of a contract the duo inked in August this year, when GasLog booked the construction of two 174,000 cubic meter LNG carriers with low pressure two stroke propulsion, with expected delivery in late 2020. Each vessel secured a charter for a firm period of seven years.

The construction contract was worth KRW 412.3 billion (USD 367 million), according to SHI.

On Monday, SHI announced that it had received orders for two LNG carriers worth KRW 426 billion (USD 378 million). The identity of the shipowner behind the deal as well as other details of the order were not disclosed.

The latest contract brings SHI’s orderbook to 48 ships, worth USD 6.1 billion. The shipbuilder’s ordering tally for this year is dominated by LNG carriers, 17 of them, out of which 5 were booked this month alone.

Press Release: GasLog

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