South Korea-based Hyundai Heavy Industries has received an order from GasLog to build and deliver two new 174,000m³ LNG carriers.
As per the contract terms, Hyundai will equip the vessels with proven tri-fuel diesel electric propulsion, providing an option for GasLog to convert to two stroke diesel engines with low-pressure gas injection.
Commenting on the two additional newbuildings order, GasLog CEO Paul Wogan said the vessels are scheduled to be delivered in the second half 2017 at a time which will be very favourable for LNG shipping, as additional liquefaction capacity comes on stream.
"We will look to place these vessels on long-term contracts with first-class counterparties and so further increase the pipeline of drop down candidates for GasLog Partners LP," Wogan said.
The two carriers will be designed to have a boil-off rate of 0.09% and reduced fuel consumption, according to the company.
GasLog has also secured up to four additional priced options from Hyundai, which will be delivered in late 2017 and early 2018 respectively.
In addition to this, the company is currently working on an initiative with Hyundai, DNV GL and GTT to develop the next generation of LNG carriers.
Meanwhile, GasLog has completed its previously announced acquisition of three LNG carriers from BG Group.
With the new orders, GasLog’s fleet has now reached 22 wholly-owned LNG carriers, comprising eleven ships in operation and the remaining on order. The company also has six such carriers operating under its technical management for third parties.