- Charter Extension Secured for LNG Carriers Courageous and Resolute Until 2039.
- Long-Term Agreement Finalized for LNG Vessels Courageous and Resolute.
- Courageous and Resolute LNG Charters Extended with New Terms from 2029.
Flex LNG Ltd. (“Flex LNG” or the “Company”) (NYSE/OSE: FLNG) announces a major update on the Time Charter Agreements (“TC”) with the Charterer, a Supermajor, of the Company’s two LNG carriers, Flex Courageous and Flex Resolute. Under this agreement, a new firm period will start in 2029 until 2032, with the possibility to extend for another seven years till 2039, reports Flex LNG.
Previous Charter Agreement Details
As recommended on November 1, 2021, Flex LNG signed TCs for the two LNG carriers with a firm period of three years for each vessel from the first quarter of 2022. The contracts consisted of options for the Charterer to extend each TC by two additional two-year periods for a potential total charter period of seven years if both options were exercised.
Extension Options and Updates
On January 18, 2024, and February 23, 2024, the Charterer notified the Company that it exercised the first two-year extension options for both vessels, extending the firm period to Q1’27. Charterer has two remaining options to extend the firm period through and including Q1’29 which it may exercise in Q1’26.
Changes to Terms of Charter Agreement
The Charterer has accepted a new firm period under the revised TCs between 2029 and 2032 for both vessels. In addition, the Charterer is allowed an option to increase every TC by up to three further periods. It includes two periods of two years each and one period of three years. This brings the new form of the contract to a 3-year firm period and optional periods of 2+2+3 years. If all extension options are exercised by the Charterer, then ships will be redelivered in 2039.
CEO Statement
Øystein Kalleklev, CEO of Flex LNG Management AS commented “We are happy to announce another substantial charter extension for Flex Courageous and Flex Resolute. Customer satisfaction is paramount to Flex LNG and we therefore focus on delivering not only advanced vessels but also a superior service level in everything we do from shore to sea. Hence, we are very pleased that our existing Charterer have agreed to continue to work together with us for a very long period to come. This extension fits with our communicated strategy of fixing our ships for longer duration at higher rates.”
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Source: Flex LNG
