Himalaya secures employment for its entire fleet of LNG-powered bulkers

Himalaya Shipping has signed another charter deal for one of its LNG-powered bulk carriers, securing employment for its entire fleet of 12 Newcastlemax vessels.

Tor Olav Trøim’s Himalaya said in a statement on Thursday it has entered into a time charter
agreement for one vessel with a “major Japanese shipping and logistics company”.

Furthermore, the vessel will start a 24-month time charter with an evergreen structure upon delivery from China’s New Times Shipyard in the first half of 2024, it said.

The vessel will earn an index linked rate, reflecting a significant premium to the Baltic 5TC index, and a profit sharing of any economic benefit derived from operating the vessel’s scrubber or running on LNG, as well as certain rights to convert the time charters to fixed rates based on the prevailing FFA curve from time to time, according to the firm.

Besides this contract, Himalaya has agreed to extend the charter for six of its vessels with a “major commodity trading company” by an additional year, until the end of 2026.

With this the company has secured employment for its entire fleet, 1 vessel on fixed time charter and the remaining 11 vessels fixed on index linked charters will on average earn a premium of 42.25 percent to the Baltic 5TC, the firm said.

“We are pleased that our vessels are achieving market high premiums and the fact that one of Himalaya’s counterparts is showing further commitment based on the quality of the fleet and the experience gained so far trading the ships,” Herman Billun, contracted CEO of Himalaya, said.

“Our simple structure, with index linked charters earning a significant premium, low G&A cost and financing with 7-year fixed bareboat rates puts us in a good position to deliver solid returns to our shareholders,” he said.

Earlier this year, Himalaya took delivery of the first vessel, Mount Norefjell, followed by the delivery of the second vessel, Mount Ita, the third vessel, Mount Etna, the fourth vessel, Mount Blanc, and the fifth vessel, Mount Matterhorn.

The latest and the sixth LNG-powered bulker, Mount Neblina, joined Himalaya’s fleet in August.

Himalaya is taking a small break with next delivery scheduled for January 2024.

NTS also recently launched LNG dual-fuel bulk carriers Mount Bandeira and Mount Hua and Himalaya expects to take delivery of both of these vessels in January.

According to its website, Himalaya expects to take delivery of Mount Elbrus in February next year, followed by the delivery of Mount Denali in June.

In addition, Himalaya expects Mount Aconcagua and Mount Emai to join the company’s fleet in July next year.

Most Popular

Cheniere takes FID on two more Corpus Christi LNG trains

US LNG exporting giant Cheniere has made a positive final investment decision to build two more midscale trains at its Corpus Christi LNG plant in Texas. The company has also issued full notice to proceed to Bechtel.

Golar progresses FLNG growth plans

Golar LNG said it had signed a final engineering study to confirm EPC price and delivery for a 5 mtpa MKIII FLNG.

Mexico Pacific seeks DOE extension

Mexico Pacific, the developer of the planned 15 mtpa Saguaro Energia LNG export project, is seeking a seven-year extension of its export deadline from the US Department of Energy.

More News Like This

Himalaya’s LNG-fueled bulkers earned $25,800 per day in April

LNG-powered bulker owner Himalaya Shipping achieved average time charter equivalent earnings of about $25,800 per day in April.

Himalaya wraps up $15 million private placement

LNG-powered bulker owner Himalaya Shipping has completed a private placement of $15 million in new shares.

Himalaya converts charter deals for two LNG-powered bulkers

Himalaya Shipping has converted the index-linked charters to fixed rate time charters for two of its LNG-powered Newcastlemax bulk carriers.

EPS, DongHwa Entec in LNG fuel move

Singapore-based Eastern Pacific Shipping and South Korean equipment supplier DongHwa Entec have joined forces on the development of a high-pressure compressor for LNG-powered vessels.