Norwegian owner and sale and leaseback player Ocean Yield has marked its entry into the liquefied natural gas trade through a buy-in into France’s Geogas LNG.
The KKR-owned firm is taking over the interests from infrastructure fund CVC DIF, formerly DIF Capital Partners, which according to its website held a 31% stake in Geogas LNG, alongside LPG player Geogas and Access Capital Partners.
Ocean Yield said the deal provides an indirect interest of up to 34% in the LNG carrier owner, France LNG Shipping. The outfit, 50/50 owned by Japan’s NYK and Geogas LNG, has six modern 174,000 cu m vessels on the water, with another two units delivering in 2024 and 2025. Four additional newbuilds, delivering in 2027, are expected to be novated to the company at or around the closing of the transaction, which Ocean Yield estimates will take place in the second half of 2024.
All ships have already been contracted to European energy companies for 10 years on average or 14 years if extension options are exercised, Ocean Yield said, adding that the deal would bring in about $840m to the company’s EBITDA backlog.
At the end of the first quarter, Ocean Yield’s fleet counted 64 wholly and partly owned vessels and vessels under construction, mostly in the three largest shipping segments.