Seapeak confirms order for LNG carrier quintet in South Korea

Seapeak, previously known as Teekay LNG Partners, confirmed that it had placed an order for five 174,000-cbm LNG carriers at South Korea’s Samsung Heavy Industries.

The shipbuilder revealed an order worth about 1.45 trillion won ($1.08 billion) on Wednesday for five LNG carries with an unidentified owner in Oceania.

Shipbuilding sources told LNG Prime that Seapeak was behind the order and that the LNG carriers would go on charter to US energy giant ExxonMobil.

Following the SHI announcement, Seapeak said in a statement it entered into shipbuilding contracts for the construction of five, 174,000-cubic meter M-type, Electronically Controlled, Gas Admission (or MEGA) propulsion LNG carrier newbuildings with the shipbuilder.

Seapeak said it would take delivery of the LNG carriers worth about $1.1 billion in 2027.

Upon their deliveries, the five LNG carriers would each operate under a fixed-rate time-charter contract with an “international energy major” for a firm period of ten years, each of which can be extended at the option of the charterer, the firm said.

Seapeak did not name the charterer.

The firm expects to finance the initial newbuilding construction instalment payments by way of an equity contribution from investment funds managed by its sponsor, Stonepeak.

In due course, Seapeak expects to secure long-term debt funding to finance the remaining construction costs, it said.

The shipping firm has interests in 46 LNG carriers and is one of the world’s largest operators of such vessels. It also operates 20 midsize LPG carriers and six multigas carriers.

Seapeak recently also agreed to buy Evergas in an all-cash transaction with a value of about $700 million.

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