GasLog Partners to buy two LNG carriers for $328m

14 August 2014 (Last Updated August 14th, 2014 18:30)

GasLog Partners has partnered with GasLog Limited to purchase two liquefied natural gas (LNG) carriers, Methane Jane Elizabeth and Methane Rita Andrea, for $328m.

GasLog Partners has partnered with GasLog Limited to purchase two liquefied natural gas (LNG) carriers, Methane Jane Elizabeth and Methane Rita Andrea, for $328m.

Each of the vessels was built in 2006 and has a capacity of 145,000m³.

The firms plan to finance the purchase with a combination of equity and the assumption of the vessels’ existing credit facilities. The companies have also signed a commitment letter with Citibank for a new $450m credit facility to refinance the current credit facilities of the vessels.

"This acquisition increases the average remaining contract term on our charters to approximately five years and adds $262m of contracted revenue under the initial charter terms."

GasLog Partners CEO Andy Orekar said: "The addition of these two vessels will significantly increase the size of GasLog Partners’ fleet from three to five ships, increasing the scale of the partnership and diversifying our operations.

"This acquisition increases the average remaining contract term on our charters to approximately five years and adds $262m of contracted revenue under the initial charter terms of 5.5 and six years, assuming full utilisation.

"The remaining pipeline of eligible dropdown vessels at GasLog Ltd and the potential for further third-party acquisitions provides a highly visible path to sustainable growth over several years."

In April, GasLog purchased the two vessels from an affiliate of BG Group; the company supervised the construction and also provided technical management for the ships.

BG has the option to extend the agreed charters for three or five years after the initial charter period.

According to the partnered firms, the vessels will generate $47.7m a year during their initial charter terms and generate $34.5m of EBIDTA.