Samsung Heavy to build LNG carrier pair for GasLog

11 February 2013 (Last Updated February 11th, 2013 18:30)

South Korea's Samsung Heavy Industries (SHI) has won a contract from LNG carrier operator GasLog to build two new 174,000cbm tri-fuel diesel electric LNG carriers.

GasLog Shanghai

South Korea’s Samsung Heavy Industries (SHI) has won a contract from LNG carrier operator GasLog to build two new 174,000cbm tri-fuel diesel electric LNG carriers.

The combined value of the two vessels is expected to be around $410-$420m and they are scheduled to be delivered in the first and second quarter of 2016 respectively.

Following delivery, the vessels will start a ten-year charter with a subsidiary of BG Group and are expected to generate a combined annual EBITDA of around $47-$48m in the first year of operation.

The contract also includes an option for four additional vessels at similar prices and terms until the end of July 2013.

Separately, GasLog has agreed to modify and extend the charter currently in place for its Hull Number 2017, which is chartered to a subsidiary of BG Group and is expected to be delivered in the third quarter of 2013.

The deal will see the vessel delivered into an eight-year charter where the first three years remain as previously contracted but the following five years will be a seasonal charter under which the vessel will provide service to BG Group for seven successive months per year and will be available for other charters for the remaining five months.

GasLog currently has a fleet of 12 ships in operation or development, three of which have been delivered while the remaining nine will be built by the second quarter of 2016.

All three of the ships in operation, including the recently delivered GasLog Shanghai, are currently on charter.


Image: The recently-delivered GasLog Shanghai is one of three ships GasLog has chartered out, with nine more vessels expected to be delivered by Q2 2016. Photo: GasLog.