Karandikars & Associates

16th May 2024

1. Taking another step towards expanding its LNG carrier fleet, GAIL (India) Limited has entered into a 14-year Time Charter Party with Cool Company Ltd (NYSE: CLCO / CLCO.OL, “CoolCo”) , a pure play LNG shipping company, for a newbuild LNG carrier
2. The time charter for the LNG carrier will commence in early 2025 and GAIL will have the option to extend the charter by two additional years beyond the firm 14-year period
3. GAIL presently has four LNG carriers in its fleet
4. CoolCo has said, "We are delighted to announce a long-term charter with GAIL, the leading gas company in one of the highest growth markets for LNG. 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.”
5. About CoolCo: CoolCo is an LNG Carrier pure play with a balanced portfolio of short and longer-term charters, the cash flows from which form the basis of the Company’s quarterly dividend for common shareholders. In addition to the built-in and funded growth from two newbuilds scheduled to deliver in the second half of 2024, CoolCo’s strategy includes ongoing assessment of opportunities for vessel acquisitions and potential consolidation in a fragmented market segment.
   Through its in-house vessel management platform, CoolCo manages and operates its LNG transportation and infrastructure assets for a range of the world’s leading companies in addition to providing such services to third parties. CoolCo benefits from the scale and stature of Eastern Pacific Shipping and its affiliates, encompassing CoolCo’s largest shareholder and the owner of one of the world’s largest independent shipping fleets, which strengthen the Company’s strategic position with regard to shipyards, financial institutions, and access to dealflow.
   CoolCo supports the world’s decarbonization and energy security needs and has stated its intention to reduce its emissions by 10-15% through its LNGe upgrade program, as part of a fleet-wide improvement target of 35% between 2019 and 2030
6. CoolCo currently owns nine modern energy-efficient TFDE LNG carriers, and four modern 2-stroke LNG carriers. The vessels range in LNG capacity from 160-174 cbm, a size that is preferred by charterers, who also benefit from the advanced containment technology with low boil off-rates (0.08-0.125%). Its managed fleet currently includes both LNG Carriers and Floating, Storage and Regassification Units (FSRUs)

Read:

1. MOL and GAIL to Strengthen Partnership (21st December 2022)