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By the end of 2025, the run-rate of LNG production is scheduled to reach 460 mtpa, 12 percent above 2024 levels, as a number of large projects come online and ramp up production volumes, CoolCo said in its second-quarter report on Thursday.
“In addition to the commencement of commercial operations at Calcasieu Pass, which has enabled a number of previously stranded vessels to exit the sub-let market, long-anticipated projects including LNG Canada and FLNG Gimi have recently begun production, and Plaquemines LNG is materially outpacing its expected production levels,” CoolCo said.
CoolCo noted that these projects are expected to continue to ramp production volumes over the course of the year, which should support a rebalancing of supply and demand in the LNG carrier charter market.
By 2028, global LNG production is on track to approach 600 mtpa, based solely on projects already under construction.
Of those, Golden Pass and Costa Azul are still scheduled to begin production during 2025 or early 2026, Cheniere’s Corpus Christi LNG continues to bring incremental trains online, and the vast Qatar LNG expansion remains on track to come online next year, CoolCo said.
“Taken together, this represents significant progress towards production levels vastly in excess of both anticipated 2028 levels and the capacity of the current LNG carrier orderbook,” CoolCo said.
“Especially with the expectation of widespread scrapping of steam turbine vessels in the relative near-term, market fundamentals support a strong charter market recovery through the medium term and beyond, for which our high-quality, relatively modern fleet is well positioned,” the company said.
Steam vessels
CoolCo said that a growing number of steam vessels are struggling to find employment in the charter market following the completion of their very long-term initial charters.
Almost 70 vessels stood idle as of August 2025, as charterers sought more fuel-efficient, low-emitting, modern vessels, the company said.
This is well above the typical 15-20 vessels idled at this time of year because of drydocks, it said.
Results
CoolCo generated total operating revenues of $85.5 million in the second quarter, compared to $85.5 million for the first quarter of 2025.
Net income of $11.91 million rose compared to $9.11 million in the first quarter, with the increase primarily due to lower repositioning expenses during the second quarter as CoolCo’s newbuild vessel GAIL Sagar commenced its long-term charter during the first quarter.
CoolCo achieved average time charter equivalent earnings (TCE) of $69,900 per day for the second quarter, compared to $70,600 per day for the first quarter.
Adjusted Ebitda of $56.5 million rose compared to $53.4 million in the first quarter.
LNG fleet
CoolCo has seven TFDE LNG carriers it acquired from Golar LNG and the four LNG carriers it purchased from its largest shareholder Eastern Pacific Shipping.
Besides these vessels, CoolCo purchased two newbuild LNG carriers from EPS, and they feature GTT’s Mark III Flex membrane cargo tank system, reliquification, air-lubrication, and shaft generators.
The shipping firm exercised its option with affiliates of EPS Ventures in June 2023 to acquire newbuild contracts for the two 2-stroke LNG carriers.
In May last year, CoolCo entered into a 14-year charter deal with India’s largest gas utility GAIL for one of the newbuild LNG carriers currently under construction in South Korea.
The vessel in question is Kool Panther, now named GAIL Sagar.
CoolCo took delivery of GAIL Sagar in January this year.
CoolCo said that chartering activity during the quarter remained subdued as long-term charterers have responded by pushing out their requirements in the expectation that nearer-term cargoes can be transported with vessels from the spot market.
Nonetheless, CoolCo successfully found near-continuous employment in the spot market for one of its newbuild vessels, Kool Tiger, whilst a long-term charter is pursued, the company said.
Moreover, the company’s Kool Glacier, after receiving LNGE upgrades, started its new secured fixed-rate employment for twelve months, from late April 2025.
The “excellent” performance of the Kool Husky after its performance upgrade to LNGE specification has resulted in CoolCo successfully securing a three-year floating rate employment, which started in the third quarter of 2025.
“LNG sector has seen positive news flow so far this year”
CoolCo CEO Richard Tyrrell said this was a “solid” quarter, anticipating the gradual return of a more balanced market.”
“The LNG sector has seen positive news flow so far this year, and when combined with the limited new vessel orders, future prospects look favorable. Recent momentum has been supported by new projects reaching commercial viability and by existing projects—such as Golden Pass—getting back on track,” he said.
“Our portfolio spans both short- and long-term charters. This quarter, longer-term charters contributed most to cash flow, while our short-term fixtures outperformed the market. Strong utilization and rates above the weak indices were partly driven by our LNGE upgrades, which deliver considerable benefits that are particularly valuable in this environment of high LNG prices and slower vessel speeds,” Tyrrell said.
He said that CoolCo expects rates to strengthen as new LNG supply enters the market and believes that “patience in fixing our few open vessels for longer periods will be advantageous.”
“This outlook is supported by the ongoing idling and scrapping of older tonnage, as noted in prior updates,” he said.
“During the third quarter, we completed two drydocks. With nine drydocks completed so far since 2024, we have one more drydock to be completed in the fourth quarter including an LNGE upgrade, and one more in the first half of 2026,” Tyrrell said.