US-listed Capital Product Partners (CPLP) has negotiated rate increases and charter extensions on two of its LNG carriers that are on existing time charters with US LNG producer Cheniere Energy.
CPLP announced an increase in the day rates for the 174,000-cbm Aristarchos and Asklipios (both built 2021).
The company said the new higher rate will apply from 1 September.
“As a result of the extension and the higher day rate, firm contracted revenues under the two charters increased from approximately $118.4m to $485.7m,” the Greek shipowner said.
In addition, CPLP said the firm charter hire period on the two ships has been extended by about 6.4 years to June and September 2031, respectively.
The charters on the vessels were previously due to expire in March and February 2025.
Those following the business closely said the revenue figures imply an estimated charter rate of around $74,000 per day over what is now a firm period of nine years. However, the original rate and the deals around the original options, which have now been confirmed as part of the extension, blur the picture slightly.
CPLP said the charterer, which is listed on the company’s website as Cheniere, has also been granted two options per vessel, each one for two years.
“The remaining charter duration for CPLP’s fleet is now extended to 7.0 years from 6.2 as of June 30, 2022,” the company said.
Modern two-stroke LNG carriers are in particularly short supply with brokers detailing that there are no available open vessels of this type remaining for 2023 as charterers move to lock in the largest, most-efficient ships to give them cover for the upcoming winter period.
Master limited partnership CPLP currently owns 19 vessels comprising six LNG carriers, nine neo-panamax container ships, three panamax boxships and one capesize bulk carrier.
CPLP has also agreed to acquire three 13,278-teu container ships and one LNG carrier between the third quarter of 2022 and the second quarter of 2023.
Evangelos Marinakis’ shipowning venture Capital Gas controls a fleet of 14 LNG carriers of which seven vessels have been fixed on multi-year contracts to charterers including Cheniere, BP, Engie and Hartree Partners Power & Gas.
Six of the fixed vessels are currently trading, with the seventh scheduled for handover in January 2023.
Capital Gas is currently sitting on seven open LNG carrier newbuildings scheduled for handover dates from 2023 through to 2026.