Wartsila, Seapeak extend LNG carrier maintenance deal

Finland’s Wartsila has signed a 16-year lifecycle agreement with Stonepeak’s Seapeak for ten liquefied natural gas (LNG) carriers.

The contract was booked in the first quarter of this year and it took effect from January 2024.

Wartsila said the deal is an extension of an earlier lifecycle agreement for these ten vessels.

The tech firm did not provide the financial details of the deal.

The scope of the agreement includes remote operational support from Wartsila experts, dynamic maintenance planning, scheduled spare parts, and field service for larger and more complex issues.

Wartsila will also provide a full-time contract manager in Seapeak’s Glasgow office.

The company said that the LNG vessels under this service agreement operate in a “highly dynamic and fast-moving” market environment, with ongoing challenges around predicting vessel schedules and voyage times.

The new agreement, which is based on 72,000 running hours, is designed to increase the engines’ time between overhauls to 30,000 operating hours, it said.

Teekay LNG Partners rebranded as Seapeak in 2022 following the completion of its $6.2 billion merger deal with New York-based private equity firm Stonepeak Infrastructure Partners.

As of December 30, 2023, the company’s LNG fleet included 49 LNG carriers, including five LNG carriers under construction at South Korea’s Samsung Heavy, and 38 NGL carriers.

The LNG fleet includes 24 LNG carriers that are accounted for under the equity method, while Seapeak also has a 30 percent interest in one LNG receiving and regasification terminal in Bahrain.

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