GasLog, owner and operator of LNG carriers, signed a ten-year time charter with Sinolam LNG Terminal, S.A. concerning an LNG floating storage unit to a gas-fired power project being developed in Panama. The FSU is scheduled for delivery in November 2020.
According to the deal, the required modifications are such that, as well as being FSU ready, the vessel will still be able to trade as an LNG carrier following the conversion works, GasLog noted in a statement. The time charter will be conducted through the conversion of the GasLog Singapore, a 155,000 cubic meter, tri-fuel diesel electric (“TFDE”) LNG carrier built in 2010.
Moreover, the conversion will be in line with the vessel’s planned 5-year survey in 2020’s Q3. In that way, the process will enable both time and cost synergies with the vessel’s regular dry-docking.
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The FSU will receive, store and send out LNG to a gas-fired power plant which is being developed near Colón, Panama, by Sinolam Smarter Energy LNG Power Company (“Sinolam”). The contract is for a fixed period delivering 100% utilization for the duration of the charter.
In light of the contract, Paul Wogan, Chief Executive Officer stated
The 10-year FSU charter once again demonstrates GasLog’s ability to execute on our strategic objectives of locking in long-term stable revenues and full utilization on one of our existing open vessels. Owning and operating an FSU will also expand GasLog’s service offering.
