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Editor in chief: Angelo Scorza
08/09/19 22:11

Long time commitment for Livanos in Central America for Chin

GasLog Ltd signs 10-year time charter for provision of an LNG FSU to Chinese subsidiary Panama Power Project that implies the conversion of the GasLog Singapore

NYSE listed GasLog Ltd., through one of its subsidiaries, has signed a 10-year time charter with Sinolam LNG Terminal, S.A. for the provision of a LNG floating storage unit (FSU) to a gas-fired power project being developed in Panama.

The time charter is expected to be fulfilled through the conversion of the GasLog Singaporea 155,000 cubic meter, tri-fuel diesel electric (TFDE) LNG carrier built in 2010; after required modifications, the vessel will still be able to trade as an LNG carrier.

The  conversion will take place in conjunction with the vessel’s scheduled 5-year special survey in the third quarter of 2020, enabling both time and cost synergies with the regular dry-docking.

The charter commences on delivery of the FSU in Panama, scheduled for November 2020.

Since September 2016, the GasLog Singapore has been trading in the LNG carrier spot market.

The contract is for a fixed period, thereby delivering 100% utilization for the duration of the charter. The FSU will incur a lower opex than if was trading as an LNG carrier, with GasLog estimating the charter will generate $20 million of EBITDA per annum over its 10-year life.  

The FSU will receive, store and send out LNG to a gas-fired power plant currently being developed near Colón, Panama, by Sinolam Smarter Energy LNG Power Company, a subsidiary of private Chinese investment group Shanghai Gorgeous Investment Development Company.

The power project has signed long-term power purchase agreements with Panamanian utility companies as well as a 15-year LNG sale and purchase agreement with Royal Dutch Shell plc.

TAG : Gas