GasLog Partners signs charter agreements for two LNG carriers

26 March 2018 (Last Updated March 26th, 2018 12:30)

GasLog Partners, a company that owns, operates, and acquires liquefied natural gas (LNG) carriers, has signed multiple charter agreements for two of its ships with a fresh customer.

GasLog Partners, a company that owns, operates, and acquires liquefied natural gas (LNG) carriers, has signed multiple charter agreements for two of its ships with a fresh customer.

The agreement also includes options for an additional two charters.

Under the terms of the agreement, GasLog Partners will provide its vessel GasLog Santiago for a period of three and a half year in the third quarter of this year.

Built in 2013, GasLog Santiago is a 155,000m3 tri-fuel diesel electric LNG carrier. The vessel is currently on a multi-year time charter with a wholly owned subsidiary of Royal Dutch Shell until July.

Ahead of commencing its new charter, the vessel will go through a scheduled drydocking. The company intends to equip the vessel with a reliquefaction module to enhance its future marketability.

A steam vessel with 145,000m3 capacity known as GasLog Partners (either Methane Jane Elizabeth or Methane Alison Victoria as nominated by the Partnership), will also be leased for a period of one year starting in the fourth quarter of 2019.

“These charters will provide continuous employment for GasLog Santiago and either Methane Jane Elizabeth or Methane Alison Victoria.”

The agreement also gives charterer options to extend GasLog Santiago charter for up to additional seven years and GasLog Partners charter for up to an additional four years, both at increasing rates.

GasLog Partners CEO Andy Orekar said: “I am very pleased to announce the signing of these charter agreements with a new, high-quality counterparty.

“These charters will provide continuous employment for GasLog Santiago and either Methane Jane Elizabeth or Methane Alison Victoria, increase the Partnership’s contracted revenue visibility, diversify our customer base and support our year-on-year distribution growth guidance of 5% to 7% in 2018.”

Methane Jane Elizabeth is a 145,000m3 steam propulsion LNG carrier built in 2006. The vessel is currently on a multi-year time charter with a wholly owned subsidiary of Shell, which is scheduled to conclude in October 2019.

Methane Alison Victoria is a 145,000m3 steam propulsion LNG carrier built in 2007. The vessel is currently on a multi-year charter with a wholly owned subsidiary of Shell, which will expire in December next year.

The latest development comes after GasLog Partners agreed to acquire GasLog Gibraltar in a deal valued at $207m. Once the transaction is closed, GasLog Partners’ fleet will include 13 LNG carriers with an average carrying capacity of approximately 156,000m3.