BG Group charters back LNG carriers sold to GasLog

BG Group charters back LNG carriers sold to GasLog

London: Methane Services (MSL), part of BG Group, has agreed to charter back the two LNG carriers it sold to GasLog Ltd in December.

The 170,000-cbm vessels Methane Becki Anne and Methane Julia Louise (both built 2010) have been timechartered for initial periods of nine and eleven years respectively.

MSL has options to extend the timecharter for each vessel for three or five years, NYSE-listed GasLog said today.

In three years’ time, GasLog Partners LP will have the option to purchase the ships from GasLog at fair market value. “This will potentially increase future distributions to GasLog in respect of its limited partner and general partner interests in the partnership”, the limited company explained.

“We believe this transaction reaffirms our commitment to BG and their appreciation of GasLog as a long-term service provider of LNG shipping,” Paul Wogan, CEO of GasLog Ltd, said today. “These ships also add growth to the Gaslog Partners dropdown pipeline and should, we believe, enhance the sum of the parts valuation of GasLog.”

Both vessels have on-board reliquefaction plants, enabling the vessels to operate in a more fuel-efficient manner at a greater range of speeds than would otherwise be achievable.

The purchase of the vessels from BG Group, announced on December 22, was completed today. GasLog has purchased eight LNG carriers from the UK-based oil and gas company over the past 12 months.

To acquire the vessels, GasLog has drawn down on a $460m credit facility led by DNB Bank, which comprises a $325m secured credit facility and a $135m subordinated two-year loan facility “at rates in line with recent GasLog financings”, the company said.

The Monaco-based company currently has a live fleet of 11 LNG carriers, with another nine newbuildings under construction.

Last week, GasLog opted to exercise its options for six new 174,000-cbm LNG carriers at Samsung Heavy Industries (SHI), South Korea.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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