Greek owner of ocean-going vessels Capital Product Partners (CPLP) has secured approval of corporate conversion and name change as it plans strategic pivot to the LNG and energy transition business.
On August 2, CPLP announced the approval by a majority of the company’s shareholders, the conflicts committee of its Board of Directors, full Board of Directors, and its general partner Capital GP, of the conversion of CPLP from a Marshall Islands limited partnership to a Marshall Islands corporation and the renaming of CPLP to Capital Clean Energy Carriers Corp.
The conversion and the name change are expected to be completed by August 26, 2024.
According to the company, the conversion and the name change are key milestones in its strategic pivot towards the transportation of various forms of natural gas to industrial customers, including LNG and new commodities emerging as a result of the energy transition, as initially revealed in 2023.
With this goal in mind, CPLP entered into the umbrella agreement with Capital Maritime & Trading Corp. for the acquisition of 11 newbuild LNG carriers. Five vessels are already on the water and the remaining six vessels are expected to be delivered between the first quarter of 2026 and the first quarter of 2027.
In June 2024, the company also ordered 10 state-of-the-art, high-specification gas carriers , including four unique handy multi gas carriers that can carry liquid CO2. These, along with the newbuild LNG carriers, collectively form the “Energy Transition Vessels”.
This $3.9 billion investment, notable both in asset value and scope, demonstrates our commitment to becoming a leading provider of transportation for LNG and other clean fuels, the company said.
“We have already made significant progress on our refocus of the business with 12 latest generation LNG/C vessels currently on the water plus the disposal of seven legacy container vessels during the first half of 2024. Upon delivery of our remaining Energy Transition Vessels between the first quarter of 2026 and the third quarter of 2027, we expect to become the largest U.S.-listed LNG shipping company and will offer our industrial customers a full range of transportation solutions” , CPLP stated.