GasLog Ends Cool Pool Arrangement

Monaco-based vessel operator GasLog has decided to assume commercial control of its vessels operating in the LNG carrier spot market through The Cool Pool, it said June 6.

The Cool Pool, set up a few years ago when the market was long, is an LNG carrier pooling agreement between GasLog and Golar LNG focusing exclusively on spot fixtures of up to 12 months in duration.

"Golar’s declared intention to spin off its spot LNG vessels, coupled with the Group’s belief that robust LNG commodity supply and demand fundamentals will lead to a tightening LNG shipping market and increased multi-year charter opportunities, have led it to decide to withdraw its vessels from The Cool Pool. Assuming commercial control of these vessels will allow the Group greater flexibility and agility in pursuing longer-term time charter opportunities. This will enhance the Group’s ability to deliver on its strategic objective of optimizing fleet employment across spot and term markets and maximising vessel utilisation, earnings and value," GasLog said.

The five vessels owned by GasLog and the one vessel owned by GasLog Partners now operating in the spot market will withdraw from The Cool Pool over coming months as contracts expire, GasLog said.

GasLog CEO Paul Wogan said that the tightening market was a good time to place more of them on longer-term charters to optimise the earnings. Customers had expressed more interest in multi-month and multi-year charters, he said.

First up is the GasLog Shanghai, which will now be able to secure an attractive term charter, said GasLog.