Capital Product Partners L.P., announced an important strategic investment in 10 latest technology gas carriers.
The Partnership announced a further continuation of its expansion into the gas sector through the acquisition of six MGCs and four LCO2s, with expected deliveries from the first quarter of 2026 to the third quarter of 2027. As informed, the company will soon rebrand as Capital New Energy Carriers.
Highlights of the transaction
- Investment in 10 new gas carriers (the “Gas Fleet”) for USD 756.0 million with expected deliveries between the first quarter of 2026 and the third quarter of 2027
- Six vessels are Dual Fuel Medium Gas Carriers (“MGCs”) and four are Liquid CO2 Handy Multi Gas Carriers (“LCO2s”)
- Key strategic expansion with an eye to the energy transition, adding complementary gas capability to core Liquefied Natural Gas (“LNG”) competence and including pioneering vessels in the transportation of LCO2 and ammonia
- Transaction expected to be funded using cash at hand obtained primarily from the sales of container vessels and debt financing
The addition of these 10 state of the art, high specification vessels will allow us to provide our existing customers such as utilities, energy companies and traders with a full range of vessels for all their gas transportation needs, increasing our footprint and reach in the market.
…Jerry Kalogiratos, Chief Executive Officer of our General Partner, said. “While LNG will remain our core competence, with an expected delivered fleet of 18 latest generation LNG carriers by 2027, this transaction puts a strong emphasis on the energy transition, as these new acquisitions will have the capability to move Liquefied Petroleum Gas (LPG), ammonia, butane, propylene and liquid CO2. The ship building berths secured are valuable early slots within a very tight ship building market and at highly reputable shipyards for these types of vessels. This strategic investment not only strengthens our market position, but also aligns us with the future of energy transportation, ensuring we remain at the forefront of the industry.”
The MGC vessels to be acquired are in line with our strategy of acquiring high specification, versatile vessels, which can offer our charterers reduced unit freight cost.
..the company said.
They are among a new generation of MGCs that are dual fuel (can burn both LPG and Fuel Oil) and have shaft generators, as well as other energy saving devices, while they offer increased capacity of 15%-30% compared to older generation MGCs. The combination of higher capacity, energy savings and cheaper fuel (LPG) offers very attractive unit freight cost economics, which we expect to command a significant premium compared to their older counterparts, reflecting substantial advancements in both design and technology.
As explained, the LCO2s are unique vessels that offer unparalleled trading flexibility, as they are capable of transporting liquid CO2, LPG, and ammonia. Featuring a low-pressure system, they ensure the lowest unit freight cost and are being constructed at high operational specifications, including but not limited to, multiple cargo systems, reinforced cargo tanks, bow and stern thrusters and ice class capabilities.
