Bermuda-based LNG gas carrier owner and operator Seapeak LLC has entered into shipbuilding contracts for the construction of five, 174,000-cubic meter M-type, Electronically Controlled, Gas Admission (MEGA) propulsion LNG carrier newbuilds, the company confirmed in late November.
The LNG carriers are to be built by Samsung Heavy Industries Co., Ltd. for a total fully built-up cost of about $1.1 billion. They’re scheduled for delivery in 2027.
“Upon their deliveries, the five LNG carriers will each operate under a fixed-rate time-charter contract with an international energy major for a firm period of 10 years, each of which can be extended at the option of the charterer,” the company said in an announcement.
Seapeak said that it expects to finance the initial newbuild construction instalment payments by way of an equity contribution from investment funds managed by its sponsor, NYC private equity firm Stonepeak.
“In due course,” the company said, “Seapeak expects to secure long-term debt funding to finance the remaining construction costs.”
In other news, in late October, Seapeak and Jaccar Holdings announced that they’ve entered into a sale and purchase agreement whereby Seapeak will acquire Greenship Gas Trust and Greenship Gas Manager Pte. Ltd. and their subsidiaries (collectively, Evergas) from Jaccar in an all-cash transaction with an enterprise value of about $700 million.
Evergas owns and operates two Very Large Ethane Carriers (VLECs) and eight Multigas/LNG Carriers. All are on fixed rate time charters and are capable of burning gas as fuel. Evergas also controls six LPG carriers under leases ending in 2024. Its corporate and operational headquarters are in Copenhagen and Singapore, respectively.
“Acquiring Evergas is another big step in Seapeak’s evolution as a leading owner and operator of liquefied gas carriers,” Seapeak CEO Mark Kremin commented. “Just as we’re bullish on LNG, we’re also bullish on natural gas liquids (NGLs), especially given the even greener nature of NGLs.”
“Together, Ineos and Evergas are vital to America’s liquefied gas export story,” he continued, “and their collaboration to develop CO2 carrier trades will be vital to decarbonizing Europe.”
The sale is subject to standard closing conditions and is expected to close by the end of 2022, at which time Evergas, including its employees, would be rebranded under Seapeak.