#Flex LNG #Bermuda #Hamilton #Flex Constellation #LNG carrier

Flex LNG Secures 15-Year Time Charter for Flex Constellation

Flex LNG Ltd., the leading player in the liquefied natural gas transportation sector, is thrilled to share its latest achievement—an impressive 15-year Time Charter Agreement (TC) for its state-of-the-art LNG carrier, Flex Constellation. This long-term commitment reflects Flex LNG's robust market position and the growing demand for LNG transportation.

Contract Details

The new time charter is set to commence in the first or second quarter of 2026 and will extend until 2041, with an opportunity for the charterer to extend the agreement until 2043. This strategic move underscores the confidence of the new charterer, a sizable Asian utility, in Flex LNG’s service quality and reliability.

Flex Constellation, delivered in 2019, boasts advanced features including ME-GI two-stroke propulsion and a partial reliquefaction system, making it ideally suited for today’s LNG transportation demands. Currently, it operates under a 10-month time charter until the end of the first quarter of 2025 with an asset-backed LNG trader.

Transition Period and Future Outlook

As previously noted in Flex LNG's third quarter results, the existing charterer opted not to exercise its one-year extension option, which means that Flex Constellation will be available for spot and/or short-term charter opportunities from late March 2025 for approximately 12 months before the new long-term contract begins. This window presents an exciting opportunity for Flex LNG to capitalize on market dynamics.

Øystein Kalleklev, CEO of Flex LNG Management, expressed enthusiasm about the new charter, stating, "We are pleased to announce another substantial long-term charter. This agreement enhances our backlog and earnings visibility, with future earnings rates aligned with the current charter for the vessel."

Strong Financial Position

With this new agreement, Flex LNG's total firm backlog extends to an impressive 64 years, with the potential to increase to 98 years if all extension options are utilized by charters. This positions the company strongly in a fluctuating market, with 11.2 out of its 13 vessels under firm time charters for the next year at an average rate nearing $80,000 per day. Additionally, one of the vessels has a variable hire arrangement, potentially extending until 2030, ensuring financial stability well into the next decade.

Flex LNG's proactive approach, coupled with a long-term vision, has established it as a leader in ensuring reliable LNG delivery. As the journey continues, stakeholders can expect further development in the company's strategic contracts and market positioning.

Conclusion

Flex LNG’s recent announcement of a 15-year time charter for its Flex Constellation represents a significant milestone for the company. It not only solidifies its earnings pipeline but also reaffirms the demand for high-quality LNG carriers in the ever-evolving energy market. With its advanced fleet and strategic partnerships, Flex LNG is well-equipped to navigate future challenges and opportunities in the LNG sector.