BAKU, Azerbaijan, November 29. Flex LNG Ltd. has announced a new 15-year Time Charter Agreement (TC) for its LNG carrier, Flex Constellation, starting in 2026 and running until 2041, with an option for extension until 2043, Trend reports.
The ship, built in 2019, is currently on a 10-month charter with a major Asian utility, which will end in early 2025. Following this, the vessel will be available for short-term charters before the new long-term agreement begins.
CEO Øystein Kalleklev highlighted that this new agreement increases Flex LNG's backlog to a total of 64 years, with potential to reach 98 years if all extension options are exercised. The agreement also provides greater earnings visibility for the company, with nearly 90% of its 2025 income days already covered by firm charters.
"Consequently, Flex LNG is very well positioned to navigate near term market weakness with 11.2 out of our 13 ships on firm Time Charter for the next year at an average Time Charter rate of close to $80,000 per day. Additionally, we also have one ship on variable hire until minimum Q3-2025, but where the charterer has the option to extend this variable hire to 2030. Hence, close to 90 per cent of our income days for 2025 is already covered with backlog stretching all the way into 2041," the CEO added.