CoolCo scores long-term charter for LNG newbuildings

The Cool Company has scored a long-term charter with Gail (India) for a newbuilding scheduled to hit the water later this year.

The deal brings CoolCo’s contract backlog to $1.2bn, or $1.9bn if charter extension options are included.

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The Oslo and New York-listed LNG carrier owner said Gail has locked in the newbuilding for 14 years, with delivery taking place on the US Gulf Coast early next year. Gail has an option to extend for another two years.

CoolCo highlighted that the charterer is an investment-graded company that’s a leading player in the natural gas sector.

The charterer plans to use the newbuilding to help secure supply of LNG volumes for India’s market.

Satyabrata Bairagi, an executive director focused on shipping and international LNG for Gail, said the company is looking forward to taking delivery of the ship as part of “ambitious” plans to meet growing natural gas demand in the country.

CoolCo did not reveal the charter rate for the contract.

“The leading-edge technology and best-in-class economic and environmental performance of this newbuild LNG carrier secure Gail’s ability to transport clean-burning LNG in a highly efficient and cost-effective manner for many years to come,” chief executive Richard Tyrrell said.

Eastern Pacific Shipping-backed CoolCo has 11 LNG carriers on the water and two 174,000-cbm newbuildings scheduled for delivery in the fourth quarter of this year.

Dubbed the Kool Tiger and Kool Panther, the ships are being built at Hyundai Samho Heavy Industries in South Korea.