Building on their previous ties, Norwegian shipowner Ocean Yield and Japan’s shipping giant Nippon Yusen Kabushiki Kaisha (NYK Line) have teamed up to split ownership in four liquefied natural gas (LNG) carriers that are yet to be constructed. However, available charter options could double the newbuilding fleet to eight LNG vessels.
While disclosing its new investment in LNG carriers on long-term charters, Ocean Yield explains that it has agreed to co-invest alongside NYK Line in four newbuilding LNG vessels, to be constructed in Korea for deliveries in 2028 and 2029. As a result, both companies will have an ownership interest of around 50% in these ships.
Andreas Røde , Chief Executive Officer, commented: “We are pleased to expand the partnership with NYK Line through this landmark transaction. Ocean Yield has over the last few years strategically entered the LNG segment, a sector that fits our investment mandate well with its infrastructure-like characteristics and long-term charters to strong counterparties.”
Once delivered, each vessel will begin long-term time charters to an undisclosed player that has been described as an investment grade-rated major energy company. The closing of the investment is subject to certain customary conditions.
This transaction is estimated to add around $600 million to the Norwegian shipowner’s EBITDA backlog. While the charterer may exercise extension options to extend the charter duration, it has also been granted options that may increase the size of the investment to eight vessels.
This investment comes months after it was announced that Ocean Yield and KKR were set to acquire CapeOmega, which co-owns ten LNG carriers operated by Knutsen LNG. The Norwegian firm also decided to buy Access Capital Partners’ share in France’s Geogas LNG.