After taking a loss in arbitration, commodity trader Gunvor has cancelled the charter for an Exmar floating storage and regasification unit (FSRU).
Antwerp-based and Brussels-traded shipowner Exmar disclosed the end of the deal on Friday and said it would begin marketing the 25,000-cbm S188 (built 2017) for redeployment.
"Exmar received a termination fee equal to two years hire as a result of the early termination," the company said.
Exmar did not disclose the sum.
The S188 had been employed by Gunvor in Bangladesh since 2018 for what was supposed to be 10 years.
Arbitration proceedings began the next year after Exmar tried to refinance the vessel in a sale-and-leaseback agreement with China's CSSC.
Exmar said the deal was not executed pending security documentation requiring Gunvor's signature, with the Swiss company raising "some legal arguments that could lead to arbitration".
The dispute forced Exmar to work with lenders to obtain extensions on its loans, which are set to come due at the end of September 2019.
Bangladesh also moved towards larger gas projects, putting the charter in doubt.
On Monday, Exmar said it had prevailed on two preliminary issues with the arbitration tribunal issuing a partial final award while rejecting Gunvor's application for declaratory relief.
The company said there would be no negative impact on its Ebitda generated from the charter.
In the first quarter of 2021, Exmar generated $3.4m in Ebitda, down from $16.1m for the first quarter in 2020.
Gunvor declined to comment.
The S188 is still listed as laid up by shipbroking giant Clarksons.
