Monaco-based LNG shipper GasLog through one of its units has signed a 10-year time charter with Sinolam LNG Terminal for the provision of a liquefied natural gas floating storage unit (FSU) to a gas-fired power project being developed in Panama.
The time charter is expected to be fulfilled through the conversion of the GasLog Singapore, a 155,000 cubic meter, tri-fuel diesel-electric (TFDE) LNG carrier built in 2010, GasLog said in its statement.
The required modifications are such that, as well as being FSU ready, the vessel will still be able to trade as an LNG carrier following the conversion works.
The GasLog Singapore’s conversion will take place in conjunction with the vessel’s scheduled 5-year special survey in the third quarter of 2020. The charter commences on delivery of the FSU in Panama, which is scheduled for November 2020, GasLog said.
Since September 2016, the GasLog Singapore has been trading in the LNG carrier spot market.
The FSU will receive, store and send out LNG to a gas-fired power plant currently being developed near Colón, Panama, by Sinolam Smarter Energy LNG Power Company, a unit of private Chinese investment group Shanghai Gorgeous Investment Development Company.
The power project has signed long-term power purchase agreements with leading Panamanian utility companies as well as a 15-year LNG sale and purchase agreement with Royal Dutch Shell.