Japan’s Nippon Yusen Kaisha (NYK) is pushing ahead with another LNG carrier expansion, lining up four large newbuildings at HD Hyundai Heavy Industries.
The Tokyo-headquartered behemoth has signed up for a 200,000 cu m quartet at the Korean yard, with options in place for a further four units.
The deal is tied to a co-investment with Norwegian shipleasing specialist Ocean Yield, which confirmed it will take around a 50% ownership stake alongside NYK in the four ships. Deliveries are slated for 2028 and 2029.
Ocean Yield said each vessel will go straight onto long-term charter with an investment-grade energy company once delivered. The vessels are rumoured to be fixed to US LNG major Cheniere on long-term employment.
The transaction is expected to add about $600m to Ocean Yield’s EBITDA backlog, with extension options that could lengthen the charter period and lift the total investment to as many as eight ships.
Chief executive Andreas Røde said the deal builds on a growing partnership with NYK and strengthens Ocean Yield’s position in LNG shipping. He described the segment as a good fit for the company’s focus on long-term, infrastructure-style assets with strong counterparties.
Ocean Yield entered LNG shipping last year through a deal with Geogas LNG, taking a stake in France LNG Shipping, a joint venture with NYK that controls 12 LNG carriers. Its holding in the platform has since increased to 45%.
The KKR-owned company has also stepped up its LNG exposure this year by agreeing to buy CapeOmega Gas Transportation from Partners Group. CapeOmega co-owns ten 174,000 cu m LNG carriers operated by Knutsen.