SHARE
The Methane Becki Anne. Image courtesy of BG Group.

BG Group agreed Tuesday to sell two modern tri-fuel diesel electric LNG carriers to Gaslog Ltd for $460 million.

Bermuda-based Gaslog will charter the two vessels, Methane Becki Anne and Methane Julia Louise, back to BG after the sale closes.

Methane Becki Anne will be chartered for nine years and Methane Julia Louise will be chartered for eleven years, with further options to extend the term for each vessel by either three or five years.

Further details about the chartering contracts have not been disclosed.

“The transactions provide BG Group with flexibility in managing its future fleet requirements and, as the ships are currently managed by GasLog, leave day to day operations broadly unchanged,” UK-based BG Group said.

The LNG carriers are currently tied to BG’s pension funding partnership as part of the company’s pension funding scheme.

About $360 million of the sale proceeds will be used to support the company’s pension funding plan.

The remaining net proceeds of about $100 million will be used to reduce BG’s net debt.

The transaction is projected to close in the first quarter of 2015, with the charter agreement expected to commence at the same time.