Flex LNG Ltd (NYSE/OSE: FLNG) has clinched a significant 15-year time charter agreement (TC) for its 2019-built LNG carrier, Flex Constellation. The agreement, set to commence in the first or second quarter of 2026, extends through 2041, with an additional option for the charterer to prolong the contract until 2043. This deal underscores Flex LNG’s strategy of securing long-term charters, bolstering its financial stability and fleet utilization.
The Flex Constellation, boasting a cargo capacity of 173,400 cbm, is equipped with cutting-edge ME-GI two-stroke propulsion and a partial reliquefaction system (PRS). These advanced features not only enhance operational efficiency but also align the vessel with the evolving demands of the LNG shipping market. Currently, the vessel operates under a 10-month TC with a prominent Asian utility and LNG trader, a subsidiary of the new charterer. This charter runs through the end of Q1 2025.
Interestingly, the existing charterer chose not to exercise a one-year extension option for the vessel, opening a 12-month window from Q2 2025 for Flex Constellation to engage in spot trading or short-term contracts before transitioning to its long-term commitment.
Øystein Kalleklev, CEO of Flex LNG Management, expressed satisfaction with the new deal, emphasizing the value of securing returning customers who recognize the company’s service quality. “We really much appreciate returning customers who appreciate the service and quality level that Flex LNG delivers,” Kalleklev stated.
He also highlighted that the agreement is aligned with the current charter rates, further strengthening the company’s revenue visibility. Flex LNG’s portfolio now boasts a total of 64 years of firm charter backlog, which could stretch to 98 years if all extension options are exercised.
With 11 of its 13 ships under firm time charters averaging $80,000 per day for 2025 and an additional vessel on variable hire until at least Q3 2025, Flex LNG appears well-positioned to navigate potential short-term market fluctuations. This proactive approach underscores the company’s commitment to maintaining a strong backlog while balancing flexibility to adapt to evolving market conditions.
