Update: Flex LNG inks contracts for six LNG carriers

Report: Flex LNG inks contracts for six LNG carriers
Image courtesy of Flex LNG

(Article updated on 30.05. with a comment by Flex LNG)

Flex LNG, the shipping company controlled by billionaire John Fredriksen, is set to add six new liquefied natural gas carriers to its fleet by 2019.

On Friday, Reuters reported the company’s CEO, Jonathan Cook as saying that contracts have been signed and that the initial payments have been processed during the month.

In an emailed statement to LNG World News, Flex LNG said a private placement in relation to the acquisition of two MEGI LNG carriers ordered by Geveran affiliate company, Seatankers, was “successful.”

Flex LNG secured US$125 million to fund the acquisition of two MEGI LNG carriers scheduled for delivery in the second and third quarter of 2019.

Once the acquisition is complete, Flex LNG will have a unified fleet of six MEGI LNG carriers. With the two vessels, the company has a total of six vessels on order at South Korean shipyards, four at Daewoo Shipbuilding and Marine Engineering (DSME) and two at Samsung Heavy Industries.

The first four vessels on order are all set to be delivered between August this year and June 2018, Flex LNG informs.

In addition, the company has chartered four vessels for a period of six months with a six months option. Three of the four vessels are operating in the spot market.

According to Cook, Flex LNG is looking to tie some of the vessels under construction on long-term contracts while some would be deployed in the spot and short-term LNG markets, adding that the growing UK market is one the company is looking to focus on.


LNG World News Staff