Flex LNG Ltd. has announced a new 15-year Time Charter Agreement (TC) for the Flex Constellation, a state-of-the-art LNG carrier, starting in 2026. This agreement will add significant backlog to the company’s earnings, with the possibility of extension until 2043. Flex LNG’s fleet is well-positioned for future growth, with a solid backlog providing stability even during market downturns.
New Time Charter Agreement for Flex Constellation
Flex LNG has successfully secured a long-term charter for the Flex Constellation, a 173,400 cbm LNG carrier, built in 2019. The new Time Charter Agreement spans 15 years, commencing in the first or second quarter of 2026, with a charter duration ending in 2041. The agreement also includes an option for the charterer to extend the contract until 2043.
The Flex Constellation is equipped with advanced ME-GI two-stroke propulsion and a partial reliquefaction system (PRS), making it ideal for current LNG market requirements. The vessel is currently under a 10-month charter with a large Asian utility and asset-backed LNG trader, which will continue until the end of the first quarter of 2025. Following this, the vessel will be available for spot trading or short-term charters for approximately 12 months before the commencement of the new 15-year Time Charter.
Strengthening Flex LNG’s Backlog and Earnings Visibility
With this new long-term charter, Flex LNG significantly enhances its backlog and earnings visibility. The firm commitment for the Flex Constellation from 2026 to 2041, with the potential extension to 2043, further solidifies Flex LNG’s financial position.
Following this agreement, Flex LNG has accumulated a total of 64 years of firm backlog, which could extend to 98 years if all extension options are exercised by the charterers. This strong backlog positions Flex LNG to weather near-term market challenges.
CEO Comments on Long-Term Charter Agreement
Øystein Kalleklev, CEO of Flex LNG Management, expressed satisfaction with the agreement, stating:
“We are pleased to announce another substantial long-term charter, this time for Flex Constellation, which will be fixed for a minimum of 15 years from 2026 to 2041, with the possibility of extension to 2043. We truly value our returning customers who recognize the service and quality that Flex LNG delivers.”
Kalleklev further emphasized that with this new charter, Flex LNG now has a substantial percentage of its fleet secured under firm Time Charters, with 11.2 out of 13 vessels contracted for the next year at an average Time Charter rate of approximately $80,000 per day.
Flex LNG’s Resilient Position in the Market
The addition of the Flex Constellation’s long-term charter to Flex LNG’s portfolio further strengthens the company’s position. With nearly 90% of the company’s income days for 2025 already covered by long-term contracts, Flex LNG is well-prepared to navigate any short-term market weaknesses, ensuring stable earnings and growth potential over the next decade.
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Source: FLEX LNG
