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Flex LNG seals three-ship extension with Cheniere

John Fredriksen-backed Flex LNG has sealed a charter extension for three ships with Cheniere Marketing International, a subsidiary of US LNG player Cheniere Energy. 

The LNG carriers Flex Endeavour, Flex Ranger and Flex Vigilant which had about six years in aggregate of the remaining firm charter period, have now had their charters extended for up to an additional 19 years in aggregate. Under the agreement, Cheniere early declared the original one-plus-one-year optional periods for all three vessels. 

In addition, the two companies have agreed to an extension of the existing charters for Flex Endeavour and Flex Vigilant.

The minimum firm extension for the 2018-built Flex Endeavour is 1,300 days from Q1 2027 to Q3 2030, plus a 500-day extension option to be declarable in Q2 2024 for the period Q3 2030 to Q1 2032. If exercised, it will give Cheniere an option to extend the ship for one more year until Q1 2033.

Meanwhile, the minimum firm extension for the 2021-built Flex Vigilant is 1,600 days from Q2 2026 to Q4 2030, with a 200-day extension option attached and if declared, Cheniere will have the right to extend the vessel until Q2 2033.

The 2018-built Flex Ranger will be redelivered to Flex LNG between March and April 2027 after completing its original five-and-a-half-year charter.

The New York and Olso-listed Flex LNG has 13 ships, of which five are on charter with Cheniere. The new deal will see Cheniere charter the trio for an aggregate period of up to 25 years. In addition, Flex LNG has about six and a half years of minimum backlog for Flex Volunteer and Flex Aurora with Cheniere with an additional four years of optional backlog.

Øystein Kalleklev, CEO of Flex LNG,  said that following this agreement Flex LNG’s minimum contractual backlog is about 63 years or about five years on average per ship.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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