Owner and operator of LNG carriers Dynagas LNG Partners LP. has secured long-term work for two of its LNG carriers navigating through harsh market environment.
As disclosed, Gazprom Global LNG Limited has extended its current charter for the 2007-built LNG carrier Ob River, on the same terms, until May 1, 2018.
In addition, the Partnership has inked a new long-term time charter deal with Gazprom Marketing and Trading Pte., an affiliate of Gazprom, for the Ob River. The charter is expected to commence following the vessel’s redelivery from its current charter and will last for a period of 10 years.
The Partnership has also secured a long-term time charter for its 2013-built LNG carrier Lena River for the Yamal LNG Project, being constructed on the Yamal Peninsula in Northern Russia.
The Lena River is currently on time charter to Gazprom through late 2018 and it is expected to join the Yamal LNG Project to support LNG deliveries from the Yamal terminal from 2019. The ship is contracted for a minimum period of 15 years.
The company estimates that these new contracts will inject approximately USD 34 million of cash significantly boosting the Partnership’s financial performance.
“Following these transformative contracts, the Partnership now boasts an enviable minimum contracted revenue backlog of USD 1.2 billion and a fleet-wide minimum average remaining charter duration of 7.9 years, which we believe will enhance and support its cash flow stability going forward,” says Tony Lauritzen, Chief Executive Officer of the Partnership.
“The current trading price of our common units reflects concern over the sustainability of our current level of distributions per unit. We believe that we are addressing this concern, which is a high priority for us and our unitholders, by entering into these new long-term time charter agreements,” he pointed out, adding that the company will continue to expand its business through vessel acquisitions and additional charter coverage.
The current fleet of Dynagas LNG Partners consists of six LNG carriers, each of which has a carrying capacity of approximately 150,000 to 155,000 cbm.