Dynagas, Gazprom in New Long-term Time Charter Contract
Dynagas LNG Partners signed a new long-term time charter contract for the Clean Energy.
The Partnership, through one of its wholly owned subsidiaries, entered into a new long-term charter agreement with an affiliate of the Gazprom Group for the employment of its 2007 built 150,000 cbm steam turbine LNG carrier Clean Energy.
The charter is expected to commence in July 2018 and will have a firm term of seven years and nine months. The Partnership expects to generate approximately $133.0 million of gross contracted revenues over the life of the contract.
Charter Amendments for the Lena River and the Yenisei River: In connection with the new long-term charter contract for the employment of the Clean Energy, the Partnership reached an agreement with Gazprom to reduce the charter hire rate on the existing time-charter contracts with its wholly owned subsidiaries that own the 2013 built ice-class notated LNG carriers the Lena River and the Yenisei River.
The charter hire reductions were effective from November 1, 2016 and over the remaining term of the respective charters. Following these amendments, the Partnership expects to incur an aggregate $18.3 million reduction in gross contracted revenues over their remaining term.
Tony Lauritzen, Chief Executive Officer of the Partnership says:"Consistent with our prior disclosure, we are focused on obtaining additional vessel contract coverage. We, through one of our wholly-owned subsidiaries, entered into a new long term charter agreement with Gazprom for the Clean Energy with a firm term of seven years and nine months."
"We also agreed with Gazprom to amend the existing time charters for the Yenisei River and the Lena River. While the Yenisei River and the Lena River charter amendments resulted in the reduction of contracted revenues by approximately $18 million, the overall effect of the new long-term employment of these three vessels is expected to result in additional contract coverage and an increase in our combined contract backlog by approximately $115 million to approximately $1.61 billion as of the date of this release, he added.
“With our fleet fully contracted through 2016 and 89% contracted through 2017, and with an estimated fleet wide average remaining contract duration of 11.0 years, we intend to continue to focus on obtaining additional contract coverage, in 2017 in particular, and managing our operating expenses," Tony concluded.
