Bermuda-based Flex LNG Ltd shipowner has agreed a new 15-year time charter deal for the 173,400 cbm LNG carrier Flex Constellation.
Øystein Kalleklev, chief executive of Flex LNG Management, said the Flex Constellation will be fixed for a firm period of minimum 15 years from 2026 to 2041 with possibility of extension to 2043.
The charter will begin during the first or second quarter of 2026 with maturity in 2041. The deal also includes an extension option for the charterer until 2043.
The LNG carrier 2019-built -with ME-GI two stroke propulsion and partial reliquefaction system (PRS)- is currently on a 10-month time charter with a large Asian utility and asset backed LNG trader, Flex LNG said, until the end of first quarter 2025.
As informed, the current charterer is a subsidiary of the new charterer.
The shipowner reported that the existing charterer of Flex Constellation did not exercise its one-year extension option. Hence, the vessel will be open for trading spot and/or short-term time charter from the end of the first quarter 2025 for a period of approximately 12 months before starting this new 15-year charter.
Chief executive Kalleklev said that with this time charter, the company further increases its backlog and earnings visibility with a charter rate for the new period in line with the existing charter rate for the vessel.
Following this agreement, Flex LNG has in total 64 years of firm backlog which may increase to 98 years in the event charterers utilize all their extension options.
“Flex LNG is very well positioned to navigate near term market weakness with 11.2 out of our 13 ships on firm Time Charter for the next year at an average Time Charter rate of close to $80,000 per day. Additionally, we also have one ship on variable hire until minimum Q3-2025, but where the charterer has the option to extend this variable hire to 2030. Hence, close to 90 per cent of our income days for 2025 is already covered with backlog stretching all the way into 2041,” Kalleklev added.
