LNG

Centrica plc, the UK owner of the British Gas utility business and a liquefied natural gas importer, has signed a long-term LNG supply agreement with US export plant developer Delfin Midstream Inc.

GasLog Ltd., the LNG fleet owner based in the Greek port of Piraeus with a total fleet of 35 vessels split with its US affiliate, has taken delivery of its latest carrier built in South Korea and chartered to UK utility Centrica plc.

The 180,000 cubic metres capacity vessel, named “GasLog Windsor”, was constructed at Samsung Heavy Industries.  It has X-DF propulsion, a combination of gas and diesel. and a Mark III Flex containment system from French technology firm GTT.

“Despite the industrial disruption in South Korea caused by the Covid-19 outbreak, the vessel was delivered on time and on budget,” said GasLog.

Centrica has US volumes from the US Gulf Coast and regasification capacity at the UK Isle of Grain terminal, located southeast of London. The UK utility also has cargoes booked from the Mozambique LNG project.

The company gave an operational update and said they remained focused on securing the health and safety of their employees, while also ensuring safe and reliable operations for their customers and the global natural gas supply chain.

As regards its fleet numbers, 19 carriers are owned by GasLog, 13 on the water and six on order, while one has been sold to a subsidiary of Mitsui & Co. of Japan and leased back to GasLog under a long-term charter.

The remaining 15 LNG carriers are owned by Nasdaq-listed GasLog Partners.

During the past two month or so, GasLog said its operational activity has been 100 percent.

GasLog and GasLog Partners have also accelerate opportunistically their dry-docking schedules during the slowdown of LNG trade in February and March.

“Four dry-dockings will have been completed by mid-April, all of which are expected to be on time and within budget, including the installation of ballast water treatment systems,” said GasLog.

The charter parties for all of the Group’s term-chartered vessels remain in effect with revenues as per the contract terms.

“During the first quarter of 2020, the Group’s tri-fuel diesel electric vessels operating in the spot and short-term market delivered time charter equivalent earnings of around $44,000 per day,” said GasLog.
“Presently, all of the Group’s vessels operating in the spot and short-term market that are not undergoing dry-dockings are on charters through to at least May,” it added.

Gaslog noted that there has been a marked increase in activity in the spot and short-term market in recent weeks, primarily driven by a resumption in industrial activity in China.

“Against a backdrop of unprecedented global uncertainty, I am very proud of the dedication of all our employees, whose health and safety remains our first priority,” said Paul Wogan, Chief Executive.

“I especially thank our seafarers for their commitment and professionalism while apart from their families and friends,” stated Wogan.

The “GasLog Windsor” is immediately delivered into an attractive seven-year charter to Centrica.

“This vessel is the first of seven newbuildings due to be delivered by the third quarter of 2021,” said GasLog.

“On a fully delivered basis, 60 percent of GasLog’s directly owned fleet will be modern X-DF vessels on multi-year term charters,” it added.