GasLog to Buy Three BG Group LNG Carriers & Charter Back

MarineLink.com
Wednesday, January 15, 2014
GasLog vessel: Image courtesy of the owners

GasLog Ltd. says it has agreed with Methane Services Ltd. (MSL), an affiliate of BG Group, to purchase 3 LNG carriers from MSL's fleet and to charter those ships back to MSL for 6-year initial terms. MSL also will have options to extend the term of the time charters for 2 of the ships for a period of either 3 or 5 years at its election.

The ships to be acquired will be nominated by MSL from an agreed group of six sister ships built in 2006 and 2007. GasLog supervised the construction of all six ships and has provided technical management for the ships since delivery. The aggregate cost to GasLog for the ships is expected to be approximately $468 million.

Each LNG carrier to be acquired is said by GasLog to be modern, steam powered and has a capacity of 145,000 cubic meters. The Company estimates that upon their acquisition, these ships will represent approximately $426.3 million of incremental contracted revenue over their initial charter terms and add over $50.0 million per annum to GasLog's EBITDA.

The closing of the transaction is subject to the satisfaction of certain conditions, including the completion of definitive documentation and necessary financing. GasLog expects the transaction to close in the first or second quarter of 2014.

Paul Wogan, CEO of GasLog, commented: "We are very pleased that we will be able to add these LNG carriers to our fleet as it again demonstrates our ability to be a consolidator in this industry. We know these ships well, having supervised their construction and technically operated them since their delivery from Samsung Heavy Industries. We expect the transaction to be accretive to our earnings and support increased dividend capacity. This transaction also further strengthens our long-standing relationship with BG Group."



 

 

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