World News
FLEX LNG, SHI Settle Dispute, Reach Deal for Two New Vessels
UK-based FLEX LNG Ltd. (FLEX) and Samsung Heavy Industries (SHI) have reached a settlement to a dispute over a scuttled deal which will now see SHI build two LNG carriers for delivery in Q1 2017, FLEX said in a statement on Monday.
Payments of $210 million already made by FLEX as part of the previous deal will be used as the first instalment, with additional funds due when the vessels are delivered in Q1 2017.
The two parties will investigate the use of MAN electronic-gas injection (ME-GI) propulsion systems for the ships.
The agreement also calls for SHI to market and sell six complete offshore LNG loading arms and share the proceeds with FLEX.
The two companies had reached agreements in 2007 and 2008 for the construction of four 170,000-cubic meter capacity LNG Producer vessels, but after FLEX decided to cancel the projects they failed to agree on a refund amount, Platts reports.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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