A plan to merge the LNG carrier interests of Exmar, Flex LNG, and Geveran Trading has been scrapped, according to a statement from Flex LNG.
Although the tie-up had been announced in July, it has now fallen through because the parties have failed to agree on terms, said the Oslo-listed company, in which Geveran holds 82%.
“The parties have failed to agree on the definitive transaction documents and the previously announced transaction will not be completed,” said Flex LNG.
Together with John Fredriksen’s privately owned Geveran Trading, Flex LNG will continue constructing two LNG carriers and examine other strategies for adding value, including opportunities across the LNG value chain, said the company.
“The current condition of the LNG market could give interesting consolidation and growth opportunities for the company,” said the Flex LNG.
On 1 July, Geveran, Flex LNG, and Exmar, the listed Belgian gas carrier company, announced they had decided to merge their LNG interests.
Flex LNG, which is headquartered in London, would have changed its name to Exmar LNG following the completion of the transaction, which was planned for the third quarter of 2015.
The merged fleet would have comprised six LNG carriers, of which four are under construction, plus five Floating Storage and Regasification Units (FSRUs), of which one is under construction, and two Floating Liquefaction Units (FLNGs), both under construction.