GasLog Partners LP Adds Two LNG Carriers

GasLog Partners LP has entered a deal with GasLog Ltd. to purchase two LNG carriers, the Methane Jane Elizabeth and Methane Rita Andrea, built in 2006, each with a capacity of 145,000 cubic meters, for an aggregate purchase price of USD 328 million.

GasLog Partners expects to finance the acquisition with a combination of equity and the assumption of the vessels’ existing credit facilities.

In addition, GasLog Partners  has entered into a commitment letter with Citibank for a new USD 450 million credit facility to refinance the current credit facilities of the vessels currently owned by the company, as well as the facilities for the two LNG carriers being acquired.

GasLog acquired the Methane Jane Elizabeth and Methane Rita Andrea from an affiliate of BG Group (BG) in April 2014.

GasLog supervised the construction of each ship and has provided technical management for the ships since delivery.

The vessels are currently operating under long-term time charters with BG with initial terms of 5.5 and 6 years, respectively (through October 2019 and April 2020).

The acquisition marks the first transaction carried out by the two entities since GasLog Partners’ initial public offering in May 2014.

GasLog Partners estimates that the vessels being acquired will annually generate USD 47.7 million of incremental contracted revenue over their initial charter terms, assuming full utilization, and USD 34.5 million of EBITDA.

Andy Orekar, Chief Executive Officer of GasLog Partners, said: “The addition of these two vessels will significantly increase the size of GasLog Partners’ fleet from three to five ships, increasing the scale of the partnership and diversifying our operations.

This acquisition increases the average remaining contract term on our charters to approximately 5 years and adds USD 262 million of contracted revenue under the initial charter terms of 5.5 and 6 years, assuming full utilization.

The remaining pipeline of eligible dropdown vessels at GasLog Ltd. and the potential for further third-party acquisitions provides a highly visible path to sustainable growth over several years.

Having now agreed and announced our first dropdown acquisition with GasLog, we believe GasLog Partners is well positioned to execute our strategy and substantially grow cash distributions for our unitholders.”