Flex LNG pens new charter deals

Norwegian shipping firm Flex LNG said it has signed charter deals for two of its liquefied natural gas carriers.

The 2019-built 173,400-cbm Flex Courageous and the 2020-built Flex Resolute would go on charter to an “energy major” for a minimum firm contract duration of three years, according to the firm controlled by billionaire John Fredriksen.

Also, the charterer has an option to extend the contracts for two two-year periods for each ME-GI ship, bringing the total period to seven years under each of the contracts.

Flex LNG said it would deliver the ships to the charterer during the first quarter of 2021, in direct continuation of their existing time charters with worldwide delivery.

According to Flex LNG, the deals remain subject to final documentation and certain closing conditions.

The firm did not reveal any additional information regarding the contracts but it is a good time to sign new contracts as charter rates have last month surged to over $200,000 a day in the Pacific.

Chief executive Øystein Kalleklev welcomed the “attractive” time charter contracts.

“Since April we have thus secured long-term fixed hire employment for eight, possibly nine of our ships in line with our communicated strategy of securing attractive revenue backlog once the market has improved,” he said.

“Our firm contract backlog is now about 33 years with a further 36 years of optional backlog. This highlights the attractiveness of owning and operating highly efficient ships with significantly lower carbon footprint than the older generation ships,” Kalleklev said.

Flex LNG has a fleet of nine ME-GI LNG carriers and four X-DF vessels built between 2018 and 2021.

Most Popular

TotalEnergies CEO expects US financing for Mozambique LNG to be approved in weeks

In May 2020, EXIM voted to amend the agency's previously approved September 2019 direct loan supporting US exports for...

Greek and German firms place orders for LNG-powered vessels in China and Korea

Reports by Intermodal and other brokers suggest that Greece's Sun Enterprises and TMS Group and Germany's Peter Dohle ordered...

PetroVietnam Power: first LNG power plant connected to grid

PV Power said in a statement that the plant generated 50 MW of electricity as part of its testing...

More News Like This

Flex LNG plans Oslo delisting

Kalleklev said during Flex LNG's earnings call on Tuesday that the decision is driven by the high costs of...

Flex LNG expects 2025 to be in line with last year

Flex LNG reported revenues of $355 million in 2024, down from $371 million in 2023 and a rise compared...

Flex seals 15-year LNG carrier charter deal

Flex LNG said on Friday the charter will start during the first or second quarter of 2026 with maturity...

Flex CEO: spot LNG shipping rates to remain ‘poor’ for remainder of 2024

Norwegian shipping firm Flex owns 13 LNG carriers, and these vessels mostly work under fixed-term charters. The company's vessel Flex...