GasLog to Supply FSU For Panamanian Power
Monaco-based LNG shipping group GasLog has agreed to hire out a gas floating storage unit (FSU) for a gas-fired power plant being built in Panama.
The company has struck a 10-year charter deal with China’s Sinolam LNG, GasLog said in a September 4 release. To fulfil the contract, GasLog will convert its 155,000 m3 GasLog Singapore LNG carrier, built in 2010, to function as an FSU. The vessel has been trading in the LNG carrier spot market since September 2016. It will still be able to serve as an LNG carrier after the revamp.
GasLog Singapore is set for delivery to Panama in November 2020. Being stationary, it should incur lower opex while working with Sinolam and GasLog expects it to generate $20mn in pre-tax earnings over the contract’s duration. The converted FSU will receive LNG from Shell under a 15-year supply between the Anglo-Dutch major and Sinolam. The latter’s power plant will supply electricity to Panamanian utilities.
GasLog did not disclose the value of the charter deal.