The combination of higher capacity, energy savings and cheaper fuel (LPG) offers very attractive unit freight cost economics, which we expect to command a significant premium compared to their
older counterparts, reflecting substantial advancements in both design and technology.
The LCO2s are unique vessels that we believe will place CPLP at
the forefront of energy transition shipping, as they represent ground-breaking technology in maritime transport. These vessels offer unparalleled trading flexibility, as they are capable of transporting liquid CO2, LPG, and ammonia. Featuring a low-pressure system, they ensure the lowest unit freight cost and are being constructed at high operational specifications, including but not limited to, multiple cargo systems, reinforced cargo tanks, bow and stern
thrusters and ice class capabilities. Furthermore, they are alternative-marine-power-ready and with options for ammonia propulsion and/or onboard carbon capture, thus potentially significantly reducing carbon emissions. With the capacity to move
more than 1 million tonnes2 of liquid CO2 annually, these vessels are expected to be the workhorses of the ammonia and liquid CO2 industries.
By acquiring these vessels, CPLP is rapidly redeploying the gross proceeds, after debt repayment, from the sale of seven container vessels sold from February
2024 to May 2024, amounting to a total of $182.5 million together with other cash at hand and debt financing. This recycling of capital from older to new clean technology is aligned with our commitment to increase our footprint in gas and
energy transition shipping.
Preliminary Capex Schedule of CPLP in USD million, as of May 31, 2024:
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2024 |
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2025 |
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2026 |
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2027 |
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Q2 |
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Q3 |
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Q4 |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Q1 |
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Q2 |
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Q3 |
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Q4 |
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Q1 |
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Q2 |
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Q3 |
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LNG/Cs3 |
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551.7 |
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49.9 |
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25.6 |
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50.6 |
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511.0 |
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51.2 |
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149.7 |
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149.7 |
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307.2 |
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Gas Fleet |
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105.9 |
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22.4 |
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38.3 |
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7.1 |
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22.5 |
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15.5 |
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22.0 |
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74.0 |
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105.4 |
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123.2 |
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47.7 |
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89.3 |
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46.9 |
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35.9 |
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TOTAL |
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657.6 |
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22.4 |
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38.3 |
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7.1 |
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72.4 |
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41.1 |
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72.6 |
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585.0 |
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156.6 |
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272.9 |
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197.4 |
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396.5 |
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46.9 |
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35.9 |
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Fleet Update
Pursuant to
the agreement to acquire 11 LNG/Cs provided under the Umbrella Agreement entered into on November 13, 2023 (the Umbrella Agreement), the Partnership took delivery on May 31, 2024 of the LNG/C Assos (174,000 cbm, latest
generation, two stroke MEGA LNG/C, built at Hyundai Heavy Industries Co., Ltd). The vessel commenced her ten-year employment with Tokyo Gas.
The vessel acquisition was financed through the payment of 10% of the acquisition price on the closing of the Umbrella Agreement on December 21, 2023,
along with a new Japanese operating lease with call option (JOLCO) arranged by BNP Paribas of $240.0 million and $9.3 million cash at hand. The JOLCO has an escalating quarterly amortization and a balloon payment of
$164.4 million payable at the end of its eight-year term.
2 |
Assuming loading LCO2 in North European port(s) and discharge in North Sea CO2 storage. |
3 |
LNG/Cs acquisitions under the Umbrella Agreement dated November 13, 2023.
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3