JUNE 25, 2014 — GasLog Ltd. (NYSE:GLOG) today announced that it has ordered two new 174,000 cubic meter LNG carriers from Hyundai Heavy Industries Co., Ltd., South Korea.
The vessels are expected to be delivered in the second half of 2017, and marks GasLog's first orders from the world's largest shipbuilder. The 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").
The two vessels will have a boil off rate of 0.09% and relatively low fuel consumption will, when delivered, be amongst the most efficient vessels in existence and are therefore expected to be extremely attractive to potential charterers.
The delivered cost of the vessels will be "in line with similar recent vessel orders," says Gaslog.
In addition, GasLog has secured up to four additional priced options from Hyundai with delivery dates in late 2017 and early 2018.
GasLog's strategy on these two vessels will be to look to place them on long-term contracts to leading counter parties ahead of their delivery.
GasLog is currently involved in an initiative with Hyundai, DNV GL and GTT that aims to develop the next generation of LNG carriers.
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 favorable 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."