UK Centrica, GasLog Sign Tanker Charter
Monaco-headquartered LNG tanker owner GasLog has signed a seven-year time charter with UK energy firm Centrica, it said May 30. A 180,000 m³ newbuild carrier with low pressure two stroke (“LP-2S”) propulsion has been ordered from Samsung Heavy Industries in South Korea, with expected delivery in the third quarter of 2020, Gaslog said. The rate of hire "is broadly in line with mid-cycle rates," it said.
GasLog and Centrica have separately agreed optionality in relation to the actual tanker. Two others, also newbuilds, are uncommitted and will be ready earlier, the first in Q3 2019 and the second in Q2 2020.
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GasLog CEO Paul Wogan said this is the second carrier that Centrica has booked with it on long-term charter and that he appreciates "Centrica’s confidence in GasLog’s ability to deliver high operating and safety standards." He added that "robust LNG demand and supply fundamentals underpin a positive outlook for LNG shipping. These fundamentals are allowing us to grow our fleet at attractive returns, to extend the drop-down pipeline for GasLog Partners and to make progress toward the growth target set out at our recent investor day.”
He told investors April 10 that GasLog was "excited by the opportunity to more than double our consolidated earnings before interest, tax, depreciation and amortisation over the next five years, and to unlock significant value upside from an increase in asset values, cash flows, earnings and shareholder returns."