BG Group is selling two modern tri-fuel diesel electric (TFDE) LNG carriers to GasLog for US$460 million, deal that will help the company pay down its debt.

The majority of the proceeds from GasLog deal will be used to support the funding of the BG Pension Scheme, in which the remaining net proceeds from the acquisition of $100 million will be used to reduce BG Group’s net debt.

BG Group will charter back the Methane Becki Anne and Methane Julia Louise, for nine and 11 years with further options to extend the term for each vessel by either three or five years.

According to GasLog, the charters will add approximately $580 million of contracted revenue over the charter period and expected to provide a combined annual EBITDA of about $46 million.

The deal is expected to close in 1Q 2015, with the charter agreement expected to begin at the same time.

Upon the completion of the acquisition, the GasLog group will have total contracted revenues of approximately $3.3 billion.

The two vessels were built at Samsung Heavy Industries and delivered in 2010. GasLog supervised the construction and technically managed both ships since delivery. Both vessels have TFDE propulsion, a cargo capacity of 170,000 cubic meters and have on-board re-liquefaction plants, which enable reduced consumption of natural gas at lower speeds.

Source: www.oedigital.com

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