Core Viewpoint - Capital Product Partners L.P. is making a strategic investment in 10 advanced technology gas carriers, aiming to diversify its gas transportation capabilities and align with energy transition trends [1][3][4]. Transaction Highlights - The acquisition includes six Dual Fuel Medium Gas Carriers (MGCs) and four Liquid CO2 Handy Multi Gas Carriers (LCO2s), with a total investment of USD 756 million and expected deliveries between Q1 2026 and Q3 2027 [6][4]. - The investment is expected to be funded through cash from the sale of container vessels and debt financing [6][10]. Vessel Specifications - The MGCs will have a capacity of 45,000 cbm and a contract price of USD 78.1 million each, while the LCO2s will have a capacity of 22,000 cbm at a price of USD 78.2 million each [5][6]. - The MGCs are designed to offer reduced unit freight costs, featuring dual fuel capabilities and energy-saving technologies, with a capacity increase of 15%-30% compared to older models [8][9]. Strategic Importance - This acquisition positions Capital Product Partners at the forefront of energy transition shipping, enhancing its ability to transport Liquefied Petroleum Gas (LPG), ammonia, and liquid CO2, which are expected to see strong demand [3][9][7]. - The company aims to maintain its core focus on LNG while expanding into conventional gas and energy transition sectors [4][6]. Market Context - The shipbuilding market is currently tight, making the secured early slots at reputable shipyards a significant advantage for the company [4][7]. - The LCO2 vessels are expected to play a crucial role in the carbon capture, utilization, and storage (CCUS) business, with the capability to transport over 1 million tonnes of liquid CO2 annually [9][6].
Capital Product Partners L.P. Announces Further Expansion With $756.0 Million Investment in Liquid CO2 and LPG-Ammonia Carriers