UK Centrica Contracts Vessel for Sabine Pass

Centrica has signed a deal with US-listed GasLog to charter a new-build, 180,000 cubic meter LNG carrier for seven years starting in late 2019, the UK utility said October 19.

Centrica's LNG head Jonathan Westby called it a long-term charter and said Centrica "looked forward to building a successful partnership with them as Centrica continues to develop its presence in the global LNG market.”

GasLog said it had placed the requisite shipbuilding order with South Korea's Samsung Heavy Industries, which it expects to be delivered in 2H 2019.

The delivery of the vessel is expected to coincide with first commercial delivery of the Centrica's contract to buy 89bn ft³ (2.5bn m³) annually from Cheniere's Sabine Pass plant in the US.

Sabine Pass, Louisiana

(Credit: Cheniere)

As with Cheniere's other liquefy-or-pay contracts, it is for an initial 20 year period, with a ten-year extension option, and is on a ‘Free on Board’ (FOB) basis, giving Centrica full destination rights for the cargoes. 

GasLog CEO Paul Wogan said: "This new charter is consistent with GasLog's strategy of securing long-term contracts with high quality counterparties." Its fully-owned fleet includes 19 LNG carriers (including 14 ships in operation and 5 LNG carriers on order) and GasLog also has four LNG carriers operating under its technical management for third parties.  

William Powell