Giant LNG Carrier Handed Over to Flex LNG

Oslo-listed gas carrier owner Flex LNG has taken delivery of its 174,000 cbm newbuilding LNG carrier Flex Rainbow from Samsung Heavy Industries (SHI).

The newbuilding has secured employment with an unnamed European energy company for a fixed period of six months that can be extended for additional three months.

The large LNG carrier is fitted with fifth generation ME-GI machinery giving considerable fuel savings compared to traditional LNG carriers, according to its owner.

Announcing the delivery, Flex LNG said that it has executed the sale-leaseback transaction of Flex Rainbow which had been revealed in the first quarter results.

The sale-leaseback deal had been inked with an undisclosed Asian lessor based on term sheet signed by the parties in March 2018.

As disclosed earlier, the sale price under the lease is 75% of the relevant ship building price for Flex Rainbow and where the remaining 25% represent the advance hire for the ten-year lease period.

In its quarterly report from May 2018, the company also revealed an agreement to purchase two 174,000 cbm LNG carrier newbuildings under construction at South Korea’s Hyundai Heavy Industries.

Flex LNG will be paying USD 184 million per vessel, which are scheduled for delivery in June and August 2020, respectively.

Flex Rainbow is the company’s fourth LNG carrier on the water while four LNG carriers are currently under construction.