CoolCo purchases two newbuild LNG carriers from EPS

Cool Company Limited (CoolCo), an owner, operator and manager of LNG carriers, has exercised its option to acquire two newbuild 2-stroke LNG carriers from affiliates of Eastern Pacific Shipping (EPS).

The LNG carriers, named Kool Tiger and Kool Panther, are being built by Hyundai Samho Heavy Industries in Korea and are scheduled for delivery in September and December of 2024.

The newbuilds will have a cargo capacity of 174,000 cbm, a GTT Mark III Flex Membrane cargo tank system, reliquefaction, air lubrication and shaft generators.

CoolCo will acquire each vessel under the pre-existing purchase option price of approximately $234 million, a discount of roughly 10% to the current quoted market value for comparable newbuild vessels.

The company expects to fund the acquisition with a combination of cash on hand, including cash that was recently released from the sale of the Golar Seal, and debt financing for which CoolCo has received a commitment letter from a financing institution.

Richard Tyrrell, CEO of CoolCo, said: “We look forward to welcoming these state-of-the-art vessels into the CoolCo fleet at a material discount to their current market value. Their 2024 delivery date makes the vessels especially attractive, with comparable vessels ordered today only being delivered in the 2027/28 timeframe. The vessels’ best-in-class design and boil-off rate make them highly attractive to charterers who benefit from the ability to operate efficiently at a range of speeds with reduced emissions.

Tyrrell added that the company is currently in discussions to forward fix the vessels on long-term time charters and expects to do so well in advance of delivery at levels that reflect current market strength.

The formation of the shipping company was finalized in 2022 with Eastern Pacific Shipping and Golar LNG as shareholders.

CoolCo owns eight TFDE LNG carriers it acquired from Golar LNG as well as four LNG carriers bought from Quantum Crude Tankers Inc, an affiliate of Eastern Pacific Shipping (EPS).

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