Five Year Charter Contract for LNG Carrier Golar Maria

Golar LNG Limited announced today that it has entered into a five year time charter with an integrated energy major for one of its modern LNG carriers, the Golar Maria.

The vessel was delivered to the Charterer with effect from November 28 and will remain on charter through the end of 2017. The time charter will generate approximately $24 million of annualized EBITDA.

As this is a charter of five years in length the vessel will be offered to Golar LNG Partners L.P. to acquire. This will provide Golar Partners the potential opportunity for another accretive acquisition and the possibility of further increasing its distributions, which is of significant benefit to Golar given its 54% ownership position in Golar Partners and its incentive distribution rights.

The rate achieved for this five year term (which encompasses the period when all committed vessel orders will be delivered fleet-wide) lends support to favourable rates for Golar’s tri-fuel diesel electric newbuilds as the inherent operating efficiencies get built in as premium to existing modern steam vessel (such as Golar Maria) charter rates. This saving could be anywhere between $20-40,000 per day depending on fuel costs.

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Golar LNG, November 30, 2012; Image: WSM