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GasLog orders two more LNG carriers

GasLog orders two more LNG carriers
Gaslog has put in orders for two new 174,000cu m LNG carriers from Hyundai Heavy Industries (HHI), to be delivered in the second half of 2017.

The vessels, with a low boil-off rate of 0.09%, will be built according to the principles of the LNG carrier concept developed by GasLog and Hyundai in conjunction with DNV GL and GTT, aiming at a “significantly improved environmental footprint… better suited to future trading patterns than existing vessels”, as described by DNV GL.

Although the vessel is set to be equipped with tri-fuel diesel electric (TFDE) propulsion, GasLog has been granted the option to change this to two-stroke diesel engines with low pressure gas injection (LP-25) if preferred. The contract also includes options for up to four additional vessels, which would be delivered between late 2017 and early 2018 if exercised.

“The vessels are scheduled to deliver… at a time which we believe will be very favourable for LNG shipping as additional liquefaction capacity comes on stream,” says Gaslog ceo Paul Wogan. “We will look to place these vessels on long-term contracts with first class counterparties and so further increase the pipeline of drop down candidates for GasLog Partners LP.”

Meanwhile the company has completed the acquisition of three LNG carriers from BG Group with the intention of chartering the vessels back to BG.

The vessels Methane Alison Victoria, Methane Shirley Elisabeth and Methane Heather Sally, to be delivered June 4, 2014, June 11, 2014 and June 25, 2014 respectively, will be time-chartered to BG for 5.5 years, 6 years and 6.5 years. Two of the contracts have options for extensions of either three or five years..

“We are delighted to complete this second transaction with BG which adds further accretive growth to GasLog’s business,” said Wogan. “We know these ships well, having overseen their construction at the Samsung ship yard in Korea and managed them on behalf of BG since their delivery.”