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Last year, Ocean Yield agreed to purchase infrastructure fund CVC DIF’s share in Geogas LNG, providing an indirect economic interest of up to 34 percent in FLS.
France LNG Shipping (FLS) is a 50/50 joint venture between Japan’s NYK and France’s Geogas LNG, a firm jointly owned by Ocean Yield, Access Capital Partners, and Geogas Maritime.
Norway-based Ocean Yield said on Wednesday it had agreed to purchase Access Capital Partners’ share in Geogas LNG.
The transaction will increase Ocean Yield’s indirect economic interest in FLS from 34 percent to 45 percent.
Ocean Yield said the deal will add about $250 million to its Ebitda backlog.
According to the firm, the transaction is expected to close during the second or third quarter of 2025, subject to certain customary conditions.
“We are pleased to increase our exposure in France LNG Shipping and further grow our presence in the LNG segment,” Ocean Yield’s CEO, Andreas Rode, said.
“FLS has proven to be a well-established and solid performing platform, backed by industry-leading partners in NYK and Geogas Maritime, both of which retain their shareholding and economic interest in FLS,” he said.
In August last year, Rode revealed that Ocean Yield could further grow its LNG business following the first transaction.
LNG fleet
FLS owns a portfolio of 12 LNG carriers on long-term charters to tier-one investment grade-rated European energy companies.
The fleet consists of seven vessels on the water and five newbuildings, with an average contract duration of nine years, or 13 years including extension options, according to Ocean Yield.
The 174,000-cbm LNG carriers owned by FLS include the 2020-built, Elisa Larus, and the 2022-built, Elisa Aquila, both chartered by units of French state-owned utility EDF.
EDF will also take on charter two LNG newbuilds.
On the other hand, French energy giant TotalEnergies took on charter four 2021-built vessels and these include LNG Adventure, LNG Endeavour, LNG Endurance, and LNG Enterprise.
French vessel manager Gazocean, a unit of Japan’s NYK, manages all of these ships.
Most recently, Gazocean welcomed the 174,000-cbm, Elisa Ardea, to its fleet. This LNG carrier serves a charter with EDF.