Greece-based ship owner and operator GasLog has agreed an eight-year charter for existing uncommitted newbuild vessel, the GasLog Warsaw.
Under the deal with a subsidiary of Spanish electric utility company Endesa, the new ship will start its fixed-term employment in May 2021.
Endesa has two options to extend the charter period by six years each, GasLog said, adding that the rate of hire for the charter is in line with mid-cycle rates.
Following the commencement of the eight-year charter to Endesa, GasLog Partners will have the right to acquire the GasLog Warsaw pursuant to the omnibus agreement with GasLog. As a result, GasLog Partners’ potential dropdown pipeline will increase to 12 LNG carriers with charter length of five years or longer.
The 180,000 cbm Mark III Flex Plus vessel is scheduled to join the company’s fleet in July 2019. Built by South Korea’s Samsung Heavy Industries, the unit features low pressure two stroke propulsion.
Before commencing its long-term charter to Endesa, the vessel will be available during a period when GasLog expects the spot market to be strong, especially during the 2019/2020 and 2020/2021 winters.