Greece-based GasLog Partners LP has reached an agreement to buy 100% of the shares in the entity that owns and charters the liquefied natural gas (LNG) tanker GasLog Greece from GasLog Ltd.
The 2016-built tanker, which was constructed by South Korean Samsung Heavy Industries, fetched a price of USD 219 million, which includes USD 1 million for positive net working capital balances to be transferred with the vessel.
GasLog Partners said that the purchase would be financed with cash on hand, including proceeds from its recent equity offering, and the assumption of USD 151 million of GasLog Greece’s existing debt.
The company added that the transaction, which is subject to customary closing conditions, is expected to close in the second quarter of 2017.
Featuring a capacity of 174,000 cubic meters, GasLog Greece is currently on a long-term time charter with a wholly owned subsidiary of Royal Dutch Shell plc (Shell) through March 2026. Shell has the option to extend the charter for the tri-fuel diesel electric LNG carrier for a further five years.
“Acquiring this strategically attractive vessel and its charter to Shell with nine years remaining highlights GasLog Partners’ differentiated business model, which provides cash flow stability with growth through acquisitions,” Andy Orekar, Chief Executive Officer of GasLog Partners, said.
With this addition, the Partnership’s fleet will be expanded to ten LNG carriers.