Flex LNG charters quartet to Cheniere

Flex LNG, a pure-play LNG carrier company has entered into time charter party agreements with Cheniere for four LNG carriers.

The agreements also include an option for a fifth LNG carrier, the company said in its statement on Wednesday.

Under the agreements, Flex LNG will employ its newbuild Flex Vigilant which will be delivered to Cheniere ex-yard in May 2021.

In addition, Flex LNG will deliver two of its existing LNG carriers to Cheniere during the third quarter of 2021, and a third existing LNG carrier during the third quarter of 2022.

Cheniere will have the option to add a fifth LNG carrier from Flex LNG’s existing fleet during the third quarter of 2022.

The firm charter period for each of the four initial LNG carriers is between three and three and a half years, with an option for Cheniere to extend each by up to two additional years.

Commenting on the deals, Øystein M. Kalleklev, CEO of Flex LNG said, “Our large and energy-efficient ships are particularly well suited for their long-haul trade and align with Cheniere’s efforts to secure required shipping capacity while improving the environmental performance of their overall fleet.”

The company’s all existing ships are large LNG carriers with a cargo capacity of approximately 173,400 to 174,000 cubic meters (CBM) and fitted with dual-fuel two-stroke propulsion (MEGI/XDF). This makes the ships particularly ideal for large parcel, long haul transportation with the industry’s lowest carbon footprint and unit transportation cost.

The time charter party agreements remain subject to final documentation and certain closing conditions in connection with the delivery and acceptance of the LNG carriers to Cheniere.