GasLog to buy three more LNG carriers from BG Group for $468m
GasLog has entered into a deal with Methane Services, an affiliate of BG Group, to purchase three additional liquefied natural gas (LNG) carriers for approximately $468m.
In addition, the company has recently completed the signed transaction for the purchase of an inital three ships from Methane Services, taking the total vessels ordered to six.
The latest three vessels are 2007-built sister ships of the three already acquired vessels. Each LNG carrier is steam-powered and has a capacity of 145,000m³.
GasLog was involved during construction of all six sister ships and also provided technical management for the vessels since their delivery.
The three new LNG carriers will be chartered back to Methane Services for six-year initial terms on average.
The time charters will be staggered similarly to the vessels recently acquired with terms of 5.5 years, six years and 6.5 years in order to avoid redelivery of the vessels at the same time.
Under the deal, Methane Services will also have an option to extend the term of charters for two of the vessels for a period of three or five years.
GasLog CEO Paul Wogan said the latest acquisition was part of the company's growth strategy.
"The transaction supports our strategy of consolidating the LNG carrier market by acquiring high quality assets," Wogan said. "The ships will be chartered back to an affiliate of BG Group, thus increasing our backlog of contracted revenue to almost $3bn."
The transaction is subject to certain conditions, including the completion of definitive documentation and necessary financing, and is expected to be complete in the third quarter of this year.