Flex LNG and Cheniere Enter into Time Charter Party Agreements

Liquefied natural gas (LNG) shipping company Flex LNG announced Wednesday it has entered into time charterparty agreements with Cheniere for four LNG carriers with the option for a fifth.

Under the agreements, Flex LNG will employ newbuild Flex Vigilant which will be delivered to Cheniere ex-yard in May 2021. In addition, Flex LNG will deliver two of its existing LNG carriers to Cheniere during the third quarter of 2021, and a third existing LNG carrier during the third quarter of 2022. Cheniere will have the option to add a fifth LNG carrier from Flex LNG’s existing fleet during the third quarter of 2022. The firm charter period for each of the four initial LNG carriers is between three and three and a half years, with an option for Cheniere to extend each by up to two additional years.

Øystein M. Kalleklev, CEO of Flex LNG Management AS, said, “The agreements secure attractive employment for four, possibly five, of our ships with a first-class charterer. Our large and energy efficient ships are particularly well suited for their long-haul trade and align with Cheniere’s efforts to secure required shipping capacity while improving the environmental performance of their overall fleet. Hence, this agreement makes very much sense for both parties, so we look forward to further developing our relationship in the years to come. Lastly, these contracts add substantial revenue backlog to our Company which is in line with our communicated strategy of securing attractive term-employment for our ships when we think the time is right.”

All existing Flex LNG ships are large LNG carriers with a cargo capacity of approximately 173,400 to 174,000 cubic meters (CBM) and fitted with efficient dual-fuel two-stroke propulsion (MEGI/XDF).

The Time Charter Party Agreements remain subject to final documentation and certain closing conditions in connection with the delivery and acceptance of the LNG carriers to Cheniere.