CPLP - Capital Product Partners L.P. Announces Further Expansion With $756.0 Million Investment in Liquid CO2 and LPG-Ammonia Carriers | Benzinga
ATHENS, Greece, June 03, 2024 (GLOBE NEWSWIRE) -- Capital Product Partners L.P. (the "Partnership", "CPLP" or "we" / "us") (NASDAQ:CPLP), an international owner of ocean-going vessels, today announces an important strategic investment in 10 latest technology gas 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
Mr. Jerry Kalogiratos, Chief Executive Officer of our General Partner, said: "I am delighted to see the Partnership taking a significant step in becoming a diversified gas transportation company with a focus on the energy transition. 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. 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."
Transaction details
The Partnership today announces 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. This is a unique opportunity undertaken by CPLP to increase its footprint into the conventional gas and energy transition gas sectors, whilst retaining the core focus on LNG.
Summary table of 10 vessels under construction being acquired in the transaction
| Vessel |
| Shipyard |
| Size (cbm) |
| Acquisition/ Contract Price (in US$ millions)1 |
| Expected Delivery |
| HMD MGC 1 |
| Hyundai Mipo Dockyard Co. Ltd, South Korea ("Hyundai Mipo") |
| 45,000 |
| 78.1 |
| Jun-26 |
| HMD MGC 2 |
| Hyundai Mipo |
| 45,000 |
| 78.1 |
| Sep-26 |
| HMD MGC 3 |
| Hyundai Mipo |
| 45,000 |
| 78.1 |
| Feb-27 |
| HMD MGC 4 |
| Hyundai Mipo |
| 45,000 |
| 78.1 |
| May-27 |
| CIMC MGC 1 |
| Nantong CIMC Sinopacific Offshore & Engineering Co. Ltd, China ("CIMC SOE") |
| 40,000 |
| 65.3 |
| Mar-27 |
| CIMC MGC 2 |
| CIMC SOE |
| 40,000 |
| 65.3 |
| Jul-27 |
| HMD LCO2 1 |
| Hyundai Mipo |
| 22,000 |
| 78.2 |