Flex LNG has confirmed the exercise of contract extensions for two of its ships.
The company has received notice from the charterer of the vessels Flex Resolute and Flex Courageous of the charterer’s exercise of the second extension option of 730 days under the original time charter contracts for the period Q1 2027 to Q1 2029 for both ships.
As communicated on November 7, 2024, the charterer extended the original contracts, which comprised of three firm years plus two two-year extension options, by adding a further three firm years for the period Q1 2029 to Q1 2032. The charterer also holds additional extension options of up to seven years per vessel from 2032.
With this announcement, both vessels will be employed on firm contract with the charterer until minimum Q1 2032.
With reference to the press release of November 29, 2024, Flex Constellation has commenced the 15-year time charter contract in March 2026 with an Asian utility and asset-backed LNG trader. Thus, Flex Constellation will now be on firm contract until minimum 2041.
"Currently, the energy markets in general, and gas markets specifically, are experiencing significant volatility following the ongoing conflict in Iran and the implications for LNG export from the Gulf States," said Marius Foss, CEO of Flex LNG Management.
"We continue trading our three open vessels into what is presently a firm spot market, supported by natural gas price dynamics that incentivise longer sailing distances. However, the market conditions may shift rapidly. The restart of existing LNG export capacity in the Middle East and the re-opening of the Strait of Hormuz remain highly uncertain at present."