Flex LNG eyes ‘more attractive’ deal for Flex Constellation as current charter comes to an end

LNG shipping company Flex LNG will take redelivery of the 2019-built Flex Constellation as the carrier’s current charterer, a trading house, has decided not to exercise its extension option.

Flex Constellation was fixed on a three-year time charter on May 17, 2021, with an option to extend the period by up to three years.

The charterer has now decided not to utilize the extension option and Flex LNG expects to take redelivery of the ship during the second quarter of 2024.

Øystein Kalleklev, CEO of Flex LNG Management AS, said: “We note that we will have Flex Constellation back during the second quarter this year which fits well with her scheduled five-years special survey which is due during second or third quarter of 2024. For 2024, we only have two ships scheduled for drydock, in contrast to four ships during 2023.

“For 2024, the charter coverage for Flex LNG is 95% following the redelivery of Flex Constellation. The Flex Constellation has been on a Time Charter with a fixed rate of $80,000 per day, in line with the Time Charter Equivalent guidance for our fleet in 2023. The term rates for one to ten years charters are currently being quoted at $90-100,000 per day according to most brokers. Consequently, we believe the vessel is well positioned to be recontracted at more attractive levels than the previous contract.”

Kalleklev added that, once the special survey is completed, the company will market Flex Constellation for short- and long-term opportunities ahead of the winter season.

The 173,400 cubic meter carrier was built by South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME), now known as Hanwha Ocean.

Flex Constellation features high-pressure ME-GI two-stroke propulsion and is equipped with a partial reliquefaction system bringing the boil-off rate in laden condition down to 0.075%.