Flex LNG, Ltd. (Flex LNG) (OSE/NYSE: FLNG) announced today that Cheniere Marketing International (Cheniere) has declared their option to employ a fifth LNG carrier from Flex LNG under the Time Charter Agreements announced April 14, 2021.
Cheniere and Flex LNG has agreed that Flex Volunteer will be the fourth ship under the agreement and that this ship will be delivered to Cheniere mid-April 2022 rather than during third quarter of 2022 as originally agreed. The Time Charter with duration of 3.5 years has therefore been extended by about 2.5 months to facilitate early delivery of the ship to Cheniere.
Flex Aurora will be the fifth ship to be delivered to Cheniere, and she will commence her 3.5-year Time Charter during third quarter of 2022 according to the original agreement. Last year, Cheniere took delivery of Flex Vigilant, Flex Endeavour and Flex Ranger under Time Charters with a minimum duration of between 3 and 3.8 years.
All existing Flex LNG ships are large LNG carriers with a cargo capacity of approximately 173,400 to 174,000 cubic meters and are fitted with efficient dual-fuel two-stroke propulsion (MEGI/XDF). This makes the ships particularly ideal for large parcel, long haul transportation with the industry’s lowest carbon footprint and unit transportation cost.
The Time Charter Party Agreements remain subject to certain closing conditions in connection with the delivery and acceptance of the LNG carriers to Cheniere.