GasLog Partners Takes Another LNG Carrier from GasLog
Owner and operator of LNG carriers GasLog Partners has signed an agreement to acquire the 174,000 cbm tri-fuel diesel electric LNG carrier GasLog Glasgow from GasLog.
The purchase price for the vessel would be USD 214 million, which includes USD 1 million for positive net working capital balances to be transferred with the vessel.
GasLog Partners estimates that the GasLog Glasgow will add around USD 23.5 million to EBITDA in the first 12 months after closing. The 2016-built carrier is currently on a multi-year time charter with a subsidiary of Royal Dutch Shell through June 2026. Shell has the option to extend the charter for a period of five years.
The unit would be financed from GasLog Partners’ available sources of liquidity, including proceeds from its November 2018 shares sale, and the assumption of the GasLog Glasgow’s USD 134 million of existing debt. The transaction is expected to close early in the second quarter of 2019.
With GasLog Glasgow, the Partnership’s fleet would be expanded to 15 wholly-owned LNG carriers.
“We continue to execute on our strategy of dropping vessels into GasLog Partners in order to recycle capital back to GasLog to fund our capital programme. In turn, this leads to further growth opportunities for the Partnership,” Paul Wogan, Chief Executive Officer of GasLog, said.