Flex LNG to seek new play for redelivering vessel as charterer opts out

Flex LNG will have one of its ships open for hire late in the first quarter of 2025 after its current charterer decided not to use the option to extend the charter.

The Oslo- and New York-listed company said in its quarterly earnings report it had received a redelivery notice on the Flex Constellation, which has been under a charter with a “large Asian LNG importer” since May this year.

Brokers earlier reported the 2019-built 173,400 cu m unit had been fixed to JERA Global Markets.

Flex LNG said in May the deal was for at least 312 days, with a one-year extension option attached that, if exercised, would have kept the vessel fixed until the end of the first quarter of 2026.

The Øystein Kalleklev-led company, backed by John Fredriksen, counts 13 ships in its fleet and has 100% charter coverage for this year and a minimum of 50 years of firm contract backlog, which may increase to 82 years with charterer’s extension options.

Earlier this month, the charters of the 2019-built Flex Courageous and the 2020-built Flex Resolute were extended from 2029 to 2032, and additional extension options were agreed for up to seven years each.

Flex LNG said that the Flex Constellation would, following redelivery next year, be marketed for short- and long-term contracts. The company currently has one ship trading spot, the 2020-built Flex Artemis, which is on a variable time charter linked to the spot market rates that had averaged $70,900 per day for modern tonnage in Q3, down nearly half from the same period last year, while Q4 spot rates for modern two-strokes have recently been quoted in the $20,000s region.