Golar LNG Partners LP (NASDAQ: GMLP) announced on Friday that it has entered into a time charter for a period of up to a maximum of 9 years with a major international oil and gas company for one of its steam LNG carriers, the Golar Grand.
LNG carrier Golar Grand - Image courtesy of Daniel Ferro/Shipspotting
The Golar Grand is currently on charter with Golar LNG Limited (Golar LNG) and will therefore be sub-chartered back from Golar LNG, at the same rate as the New Charter, for the initial period of the New Charter until the Golar LNG charter ends in October 2017.
The vessel will be delivered under the New Charter during the second quarter, 2017 for an initial period of 2 years with a series of extension options up to the maximum charter period of 9 years.
The Partnerships operating income before depreciation derived from the Golar Grand will be unchanged until October 2017 when the Golar LNG charter ends. Assuming initial extension options for up to 5 years are exercised the New Charter is expected to generate on average approximately $10 million of operating income before depreciation per annum over the full 5 year term.
Source: Golar LNG