GasLog Ltd. (GasLog, NYSE:GLOG), an international owner, operator and manager of liquefied natural gas (LNG) carriers, announced earlier today that it has signed a time charter party with Centrica plc. (Centrica) to charter a vessel for a period of seven years. The vessel, a 180,000 cubic meter LNG carrier with XDF propulsion, has been ordered from Samsung Heavy Industries (Samsung) in South Korea.
Centrica will charter the vessel from GasLog for a period of seven years commencing in the second half of 2019.
The daily charter rate is in line with GasLog's average long-term charter rate.
GasLog Partners LP (GasLog Partners, NYSE:GLOP) has the right to acquire the vessel pursuant to the omnibus agreement between GasLog and GasLog Partners. Securing a seven-year charter on this vessel extends GasLog Partners' dropdown pipeline of future vessels from thirteen to fourteen.
Paul Wogan, Chief Executive Officer of GasLog Ltd., commented, "I am delighted to secure a new charter with Centrica, one of the leading European energy companies. This new charter is consistent with GasLog's strategy of securing long-term contracts with high quality counterparties and further extends the dropdown pipeline to GasLog Partners.
Centrica is an important new customer for GasLog and we look forward to providing them with first class LNG shipping services as they continue to expand their LNG activities.
Following this charter, GasLog has five newbuildings with contracts of between 7 and 10 years, which deliver over the next three years providing significant inbuilt revenue and EBITDA growth."