Canada’s Seapeak has clinched a huge new LNG carrier order linked to ExxonMobil business.

The former Teekay LNG Partners, now owned by Stonepeak, said it had signed up to build five 174,000-cbm electronically controlled gas-admission, or ME-GA, propulsion ships at Samsung Heavy Industries in South Korea.

The vessels are costing $1.1bn in total and are scheduled for delivery in 2027.

They will operate under a fixed-rate time-charter contract with an international energy major for a firm period of 10 years.

These deals can be extended at the option of the charterer, which is likely to be ExxonMobil.

TradeWinds has reported that the energy major originally set aside 14 LNG slots with SHI, one of which is understood to have lapsed, leaving it 13 berths.

The yard said on 11 November it had secured orders for two of the slots priced at KRW 589.7bn ($443.4m) for delivery by March 2026. It did not name the owner or charterer associated with the contracts.

Several newbuilding sources told TradeWinds that Greece’s Minerva Gas was the company behind this deal for ExxonMobil.

Seapeak expects to finance the initial newbuilding construction instalment payments by way of an equity contribution from investment funds managed by its sponsor, Stonepeak.

“In due course, Seapeak expects to secure long-term debt funding to finance the remaining construction costs,” the company added.

Following up $700m Evergas deal

Last month, Seapeak expanded by spending $700m on a takeover of Denmark’s Evergas.

It is acquiring the two companies comprising the operator — Greenship Gas Trust and Greenship Gas Manager — from France’s Jaccar Holdings in an all-cash deal.

Seapeak was one of three buyers in the running for the fleet of two very large ethane carriers and eight multigas/LNG carriers. More than 400 staff will transfer over.

All the ships are on fixed-rate time charters to Ineos and are capable of burning gas as fuel.

Evergas also controls six LPG carriers under leases ending in 2024.

Seapeak already has interests in 46 LNG carriers, 20 midsize LPG carriers, including two on order, and six multigas carriers.

Ownership in the vessels varies from 20% to 100%.

In addition, it owns 30% of an LNG regasification terminal.

In January, Stonepeak’s $6.2bn deal to take Teekay LNG Partners private was closed.

As part of the deal, parent Teekay Corp received $641m.