Samsung Heavy to Ink USD 195 Mn Deal for LNG Carrier

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…As Flex LNG Agrees Charter Deal for New LNG Carrier***

South Korean shipbuilder Samsung Heavy Industries (SHI) is to sign a contract for the construction of a 180,000 cbm liquefied natural gas (LNG) carrier.

The deal, worth KRW 210 billion (USD 195 million), is expected to be concluded by the end of this year, SHI said in a statement.

Although the name of the company which ordered the ship was not disclosed, SHI said it is a “foreign company”.

This year, SHI secured a total of 28 orders worth USD 6.9 billion, exceeding its annual order target of USD 6.5 billion.

SHI said it will close the year with orders including eight oil tankers, seven shuttle tankers, six containerships, five LNG carriers, one floating production unit (FPU) and one LNG floating storage and regasification unit (FLNG).

In the meantime, Oslo-listed LNG carrier owner and operator Flex LNG has entered into a time-charter contract for its newbuilding Flex Endeavour.

The deal, which was agreed with German energy firm Uniper Global Commodities, would employ the 173,400 m3 cargo capacity LNG carrier for a period of fifteen to eighteen months, commencing immediately upon its delivery.

Flex Endeavour is currently under construction at South Korea’s shipyard Daewoo Shipbuilding and Marine Engineering and is scheduled to be handed over to its owner in January 2018.

“The deal will provide Flex LNG with full utilization of the vessel from day one without idle time or costs normally associated with the maiden voyage for a newbuild LNG carrier,” Jonathan Cook, Chief Executive Officer, said.

“The charter period is in line with our chartering strategy and brings increased earnings visibility for 2018,” Cook added.

This charter formalizes the arrangement that was agreed for the extension of the chartered-in vessel from April 2018. Flex LNG informed that the arrangement brings forward the delivery date to coincide with the delivery of the ship, equipped with the new high efficiency MEGI propulsion system, at the start of 2018.

Additionally, the company said that it has fulfilled the closing conditions for the term loan facility for the first three LNG carrier newbuildings and will utilize the loan facility in connection with the deliveries of these vessels.

The company received a firm offer for a USD 315 million loan on November 14.

World Maritime News