Awilco LNG secures new leaseback arrangement

Norwegian shipping firm Awilco LNG has completed a sale and leaseback of its two LNG carriers with CCB Financial Leasing (CCBFL), a wholly-owned subsidiary of China Construction Bank.

Awilco had chartered the vessels — the 160,000m³ Wilpride and 156,000m³ Wilforce — from Bermuda-based owner Teekay Partners since 2013, when the Norwegian firm sold the vessels to Teekay. But the leaseback agreement with Teekay was subject to a mandatory purchase by Awilco that was due to take place next month.

CCBFL will lease back the two carriers to Awilco for a period of up to 10 years, on a bareboat basis with floating charter rates. Awilco expects this rate to be around $45,000/d for each vessel through this year. The leaseback agreement includes repurchases options for Awilco from 2023 and a repurchase obligation at the end of the agreement in 2030.

Awilco has secured charters on the two vessels for 60pc of available hire days over the first quarter of this year at a rate of around $100,000/d each, the firm said. But these will expire in February-March, it said, meaning that the two vessels — both of which have tri-fuel diesel-electric propulsion (TFDE) systems — may again be offered on the spot charter market.

The Argus-assessed spot charter day rate for TFDE vessels west of Suez was $91,500/d yesterday, with the corresponding east of Suez rate at $83,000/d.

By Samuel Good