Flex LNG to market ship redelivered in 2025 as charterer drops option

Bermuda-based Flex LNG Ltd shipowner will have one of its ships marketed for short and long-term contracts after its current charterer decided not to utilize the extension option under the time charter.

The shipowner said in its third quarter results that the charterer of 2019-built Flex Constellation with a 173,400m³ capacity sent notice in November that they will not utilize their extension option under the time charter.

As it is reported, the vessel is expected to be re-delivered from the existing contract late in the first quarter of 2025.

Following the re-delivery, the vessel will be marketed for short and long-term contracts.

Earlier this month, the company has secured additional firm contract backlog for both Flex Courageous and Flex Resolute with minimum 3 years firm period from Q1-2029 to Q1-2032 and extension options stretching all the way to 2039 (2+2+3-year option periods).

Øystein M Kalleklev, CEO of Flex LNG Management AS, said: “We are also pleased to announce additional backlog with the extension of Flex Courageous and Flex Resolute.

“These two LNG carriers commenced a 3+2+2 year time charter with a supermajor during first quarter of 2022, where the charterer during the first quarter utilized its first extension option from 2025 to 2027.

“We have now agreed an amendment of the time charter where we have added a firm three-year period from 2029 to 2032 and where the charterer has the right to extend the time charter for additional periods until 2039.”

All of the vessels in the company’s fleet have contracts for the remaining days in 2024.

For 2025, the firm contract coverage is 91%. The aggregate firm contract backlog for the fleet is 44 years based on the earliest charter expirations, which could increase to 62 years if the company’s charterers exercise all of the contracted options.

Upon finalization of the recently announced Flex Resolute and Flex Courageous time charters, the charter expiration period would increase to 50 years, which could increase to 82 years if the charterers exercise all of the contracted options.