GasLog to Convert LNG Carrier for Panama FSU Charter

Owner and operator of LNG carriers GasLog has signed a 10-year time charter related to an LNG floating storage unit (FSU) with Sinolam LNG Terminal, S.A.

Under the deal, the unit would be provided for a gas-fired power project being developed near Colón, Panama.

The time charter is expected to be fulfilled through the conversion of the GasLog Singapore, a 155,000 cubic meter, tri-fuel diesel electric LNG carrier built in 2010. The required modifications are such that, as well as being FSU ready, the vessel will still be able to trade as an LNG carrier following the conversion works, GasLog explained.

The conversion will take place in conjunction with the vessel’s scheduled 5-year special survey in the third quarter of 2020, enabling both time and cost synergies with the vessel’s regular dry-docking.

The charter commences on delivery of the FSU in Panama, which is scheduled for November 2020. The contract is for a fixed period, thereby delivering 100% utilization for the duration of the charter.

GasLog estimates that the latest agreement would generate around USD 20 million of EBITDA per annum over its 10-year life.