BW Gas finalises Suez LNG deal

Bergesen Worldwide Gas ASA (BW Gas) has finalised agreements with Suez LNG Trading SA for two LNG vessels for a period of 20 years. These vessels will be used to transport LNG primarily to the USA from the new liquefaction plant in Bal Haf, Yemen.

The two 156,100 cubic metre vessels will be built at Korean shipbuilder DSME for a total contract price of $427 million. The newbuildings will be delivered in May 2009 and will be equipped with state-of-the-art diesel-electric propulsion.

The vessels will be financed through a leasing agreement and the charterer has options to participate with 49% in the lessee company under the tax lease arrangement. This option has to be declared latest by May 2008.