Bermuda-based Flex LNG Ltd has announced the exercise of contract extensions for two of its ships and reported the commencement of a 15-year time charter contract with a large Asian utility and asset backed LNG trader for one of its vessels.

The New York-listed company said it had received notice from the charterer, a supermajor, of the vessels Flex Resolute (2020-built) and Flex Courageous (2019-built) 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 reported 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.

After the announcement, both vessels will be employed on firm contract with the ‘supermajor’ until minimum Q1 2032.

Following the exercise of these options, the company’s firm contract backlog is 53 years and may increase to 74 years if the charterers exercise the extension options.

Meanwhile, the company reported that the vessel Flex Constellation commenced the 15-year time charter contract in March 2026 with a large Asian utility and asset backed LNG trader. Thus, Flex Constellation will now be on firm contract until minimum 2041.

Marius Foss, CEO of Flex LNG Management AS, commented: “We are pleased that the charterer of Flex Resolute and Flex Courageous acknowledge our high-quality service of safe and reliable operation whereby the charterer has again exercised extension options for both ships. Consequently, the ships are now on firm contract to minimum 2032.

“Equally, we are pleased to confirm that Flex Constellation has been delivered to the charterer and commenced the 15-year time charter contract. We look forward to providing safe and reliable transportation of LNG for the Asian based charterer 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. We continue trading our three open vessels into what is presently a firm spot market, supported by natural gas price dynamics that incentivize 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.”