GasLog Orders One More LNG Carrier in South Korea

Owner and operator of LNG carriers GasLog has unveiled a new contract for the construction of a 180,000 cbm LNG carrier at Korean yard Samsung Heavy Industries (SHI).

The LNG carrier (HN 2262) with low pressure two stroke (LP-2S) propulsion is expected to be delivered in the third quarter of 2020, according to the company.

GasLog has also signed a seven-year time charter contract with a wholly owned subsidiary of Centrica for the newbuilding.

In addition, the parties have separately agreed optionality in relation to the actual vessel to be delivered into the charter. This optionality allows, instead of HN 2262, either HN 2212 or HN 2274 to be delivered into the charter. Both vessels are currently uncommitted GasLog newbuild LNG carriers due for delivery in Q3 2019 and Q2 2020, respectively.

What is more, GasLog Partners has the right to acquire the vessel delivered into the charter. As a result, GasLog Partners’ potential dropdown pipeline will increase to nine LNG carriers with the charter length of five years or more.

In February, GasLog also ordered a 180,000 cbm LNG carrier at SHI that will be chartered to Centrica.

“I am delighted that Centrica has chosen GasLog to provide them with a second LNG carrier on long-term charter,” Paul Wogan, Chief Executive Officer of GasLog, said.

“Robust LNG demand and supply fundamentals underpin a positive outlook for LNG shipping. These fundamentals are allowing us to grow our fleet at attractive returns, to extend the drop-down pipeline for GasLog Partners and to make progress toward the growth target set out at our recent Investor Day,” Wogan added.

GasLog’s consolidated owned fleet consists of 30 LNG carriers — 25 ships on the water and five on order. The company has also an additional LNG carrier which was sold to a subsidiary of Mitsui & Co. Ltd. and leased back under a long-term bareboat charter. GasLog’s consolidated fleet includes 13 LNG carriers in operation owned by GasLog Partners.