GasLog Heads to Hyundai Heavy for LNG Newbuilds

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June 25, 2014

GasLog Singapore, a 155,000 cbm LNG carrier. Photo courtesy GasLog

Bermuda-based GasLog (NYSE:GLOG) announced Wednesday an order for two new LNG carriers from South Korea’s Hyundai Heavy Industries, marking the ship owner and operator’s first new vessel order from the world’s largest shipbuilder and a departure from rival Samsung.

The 174,000 cubic meter vessels have been ordered with proven tri-fuel diesel electric (TFDE) propulsion with GasLog’s option to change to two stroke diesel engines with low-pressure gas injection (“LP-2S”). GasLog says that the two vessels will have a low boil off rate of just 0.09% and relatively low fuel consumption, making them extremely attractive to potential charterers.

The vessels are expected to be delivered in the second half of 2017. GasLog has also secured up to four additional priced options from Hyundai with delivery dates in late 2017 and early 2018.

The delivered cost of the vessels will be “in line” with similar recent vessel orders, GasLog said in a statement. GasLog further noted that the two vessels mark its first-ever order from Hyundai and that it “looks forward to developing our relationship with Hyundai further.”

Including the vessels announced Wednesday, GasLog’s fleet currently consists of 22 wholly-owned LNG carriers, including eleven ships in operation and eleven LNG carriers on order at rival South Korean-shipyard Samsung Heavy Industries. GasLog does have options for more vessels with SHI. GasLog also has six LNG carriers operating under its technical management for third parties.

Paul Wogan, CEO, commented, “I am delighted that we have ordered two additional newbuildings. The vessels are scheduled to deliver in the second half 2017 at a time which we believe will be very favourable for LNG shipping as additional liquefaction capacity comes on stream. We will look to place these vessels on long-term contracts with first class counterparties and so further increase the pipeline of drop down candidates for GasLog Partners LP.”

In June, class society DNV GL announced an initiative along with GasLog, Hyundai, and French membrane-maker GTT to develop the next generation of LNG carriers.

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