Bergesen Worldwide (BW) Gas ASA signed two 20-year time charters with Suez LNG Trading in Luxembourg on 26 October. The same day, BW Gas signed shipbuilding contracts with Daewoo Shipbuilding & Marine Engineering for two 156,100 cbm dual fuel, diesel electric LNG carriers for delivery May 2009.
The two LNG carriers will be used by Suez LNG Trading to serve their 20-year FOB Sale and Purchase contract with Yemen LNG.
The vessels are intended for serving the US market and will be able to call Suez’ LNG terminal in Boston. Although these vessels are considerably larger than the traditional Boston max vessel, this has been made possible by special arrangements introduced by BW Gas and Daewoo.
The two LNG carriers have a contract price of USD 427 million and are financed through a tax lease agreement provided by SG Corporate & Investment Banking.
Suez LNG Trading has options to participate with 49 per cent in the lessee companies, thereby taking part in the bare boat/time charter deal and upon expiry of the t/c, also in the ownership of the vessels.