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Capital Product Partners adds 11 new LNG carriers in $3.1 billion deal

Published 11/13/2023, 07:18 AM
Updated 11/13/2023, 08:01 AM
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(Reuters) - Vessel owner Capital Product (NASDAQ:CPLP) Partners said on Monday it has acquired 11 newly built LNG carriers from Capital Maritime for $3.1 billion, opting for more fuel-efficient engine propulsions as part of the global energy transition.

Shipping companies are also investing in LNG carriers as buyers look to fill Europe's storage inventories by opting for alternatives to Russian gas imports.

The United States regained its top position as the world's largest exporter of liquefied natural gas in the first six months of this year, according to the U.S. Energy Information Agency.

"We are well positioned to take advantage of the strong fundamentals of the LNG industry ...we expect our contracted revenues to increase by 87% to $3.1 billion (following deal close)," Chief Executive Jerry Kalogiratos said.

Capital Products said it will also look to sell its non-core container vessels after closing the deal with Capital Maritime & Trading Corp and Capital GP.

The company, which is also changing its name to Capital New Energy Carriers L.P., said the new carriers will enter its fleet during 2023-27.

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