Axios II LNG carrier joins Capital Product Partners’ fleet

Capital Product Partners L.P. has taken delivery of the LNG Carrier Axios II as part of its umbrella deal covering the acquisition of 11 newbuild liquefied natural gas carriers.

The vessel was built by Hyundai Heavy Industries and delivered in January 2024. The dual-fuelled LNG carrier is fitted with an air lubrication system and ballast water treatment system.

The Axios II, with a capacity of 174,000 cubic meters, is the second vessel delivered under this agreement.

As reported earlier, CPLP, a Marshall Islands master limited partnership, entered into an umbrella agreement with Capital Maritime & Trading Corp. and Capital GP on November 13, 2023, providing for the acquisition of eleven newbuild LNG carriers from Capital Maritime as part of its transition to the LNG sector.

The total acquisition price for the 11 vessels stands at an impressive $3.13 billion.

The vessel has initiated a one-year time charter at a market-linked rate, followed by a seven-year bareboat charter with Bonny Gas Transport Limited, with an option for an additional three years.

“Financials for the acquisition involve cash, a $190.0 million senior secured loan from ING Bank N.V., and a $92.6 million purchase price deferral, in line with the seller’s credit agreement in the agreement,” the company said.

Axios II marks the ninth latest-generation LNG/C in Capital Product Partners L.P.’s fleet. The remaining nine vessels are expected to be delivered between Q2 2024 and Q1 2027.

Each vessel boasts a substantial capacity of 174,000 cbm and is either built or under construction at Hyundai Heavy Industries Co., and Hyundai Samho Heavy Industries Co. Ltd., South Korea.

CPLP plans to dispose of its container vessel fleet signaling an exit from the market entirely. The partnership has also committed to a change of name and aims to convert from a Marshall Islands limited partnership to a corporation with customary corporate governance provisions by June 21, 2024.