John Fredriksen-controlled Flex LNG has secured new long-term charter deals for three of its LNG carriers giving the company a total of 24 years of cover on the trio of ships.
Flex said on Thursday that it had agreed with the “supermajor” charterer of its LNG carriers, the 173,400-cbm Flex Enterprise (built 2018) and 174,000-cbm Flex Amber (built 2020) to replace the existing variable time-charters on the vessels with seven-year fixed hire time-charters.
The original charters on the vessels had been due to expire in October 2023 and March 2024.
Brokers have previously named Chevron as the charterer of the two LNG carriers.
Their new fixed-term deals start in the third quarter of 2022 and expire in the corresponding period of 2029.
Flex also announced that the “large global trading company” which currently charters the 174,000-cbm Flex Rainbow (built 2018) had agreed a new ten-year fixed-rate charter on the vessel.
This will start in direct continuation with the existing time charter which expires in January 2023. It will conclude in early 2033.
The three new deals on the open vessel positions which Flex has been marketing remain subject to final documentation and customary closing conditions.
Flex said in May, during a results presentation, that it was optimistic about the prospects of re-contracting these three vessels in advance of their redelivery from their existing time-charters given the healthy term market and lack of available modern tonnage.
Flex LNG chief executive Oystein Kalleklev detailed the three new deals on the vessels will add about $750m of fixed backlog, reflecting the strong period market today.
He said with the new contracts Flex’s firm minimum charter backlog on its 13-ship LNG fleet is 54 years, with another 28 years of possible extension options.
Kalleklev said: “Not only are we agreeing long term employment for these three ships, but we are also pleased that we are doing so with the existing charterers who have been repeating customers.
“This demonstrates the attractiveness of not only of the ships but also the high service level of professionalism of the entire organisation from seafarers to the people onshore,” he added.