Evangelos Marinakis-controlled Capital Gas has signed for up to three LNG carrier newbuildings at Hyundai Samho Heavy Industries as it builds its fleet to 12 vessels.
Industry sources following the company said the Greek owner has added a trio of 174,000-cbm ships that will be fitted with ME-GA engines, partial reliquefaction, Mark III Flex cargo containment systems and a shaft generator arrangement designed to reduce methane emissions.
Two vessels are due for delivery in the second quarter of 2024, with the third to follow in the third quarter.
According to a statement by the yard, its latest three LNG carrier orders, which it announced on Monday, are priced at KRW 748bn ($632m), or more than $210m each.
Temptation
Brokers are quoting levels of LNG newbuildings at more than $200m and firming in a market in which there is limited berth space for 2024 and into 2025, but demand for LNG carriers is strong.
The climate appears to be tempting some independent shipowners such as Capital Gas and Celsius Shipping to seek out yard slots, despite the high prices, and there is market talk that other Greek names are also on the hunt for berths.
This is Capital Gas’ second set of LNG orders this year.
In June, the company returned to Hyundai booking a pair of 174,000-cbm LNG carriers for delivery dates in 2023.
The shipbuilder reported the contracts — without naming the owner — as being for ships priced at $193.5m.
TradeWinds reported in July that the company had firmed up an option for a single vessel. But while Capital Gas had come close to confirming this, the shipowner is said to have later retreated and the order was not concluded.
Open tonnage
Capital Gas has been a repeat HHI customer on LNG: with the five ships contracted this year, it has ordered 12 newbuildings in total.
The shipowner made its break into LNG carriers in 2018, booking four firm vessels, which the yard priced at $186m each, and pencilling in a series of six options.
It firmed three of the options it was holding for this first tranche of LNG tonnage to give it seven ships, booking the last in August 2019.
To date, Capital Gas has fixed out six of its 12 LNG carriers on time charters.
Three of the vessels are committed to BP, two to Cheniere Energy and one to France’s Engie, all under multi-year deals with options to extend the hire.
The other six vessels are speculative orders giving Capital Gas a significant percentage of the non-committed LNG newbuildings that will deliver in 2023 to 2024 .
The company has taken delivery of six vessels — handed over in 2020 and this year — that are now trading under their contracts.
All six have been acquired by US-listed arm Capital Product Partners.
A seventh vessel is scheduled for handover in January 2023, with two more to follow in the fourth quarter.
Capital Gas Ship Management, which is a new player in LNG shipping, has taken direct technical management of two of the vessels directly from the shipyard and delivered these to their charterers.
