Oslo-based shipping company I.M. Skaugen has signed long-term time charter contracts for three multigas (MG) vessels, including two 10,000 cbm and one 12,000 cbm MGs.
The company said that the contracts, which are a part of a project representing a “proof of concept” of its small scale LNG logistics solutions (SSLNG), are expected to generate revenues of about USD 42 million on an annual basis, representing about USD 420 million for the contract period of 10 years.
Under the agreements, the company will provide shuttle/feeder services, floating storage support, as well as storage and offloading of liquefied natural gas (LNG) with a client sponsored by two existing gas fired power plants in Africa.
In addition, I.M. Skaugen has been requested to perform the complete project management of this “virtual pipeline” to be established, encompassing the entire supply chain from the sourcing of LNG supply to the delivery of gas to the power plants.
Start-up of the contract is planned for late March or early April 2017 with the delivery of the first LNG cargo.
The contract is subject to the client securing the relevant and necessary governmental approvals and financial close.