On December 19, Norwegian shipowner and sale-and-leaseback company Ocean Yield announced via its official website that it had reached an agreement with Japanese shipping giant Nippon Yusen Kabushiki Kaisha (NYK) to jointly invest in the construction of four new liquefied natural gas (LNG) carriers.
The new vessels will be constructed at a South Korean shipyard, with delivery scheduled for 2028 and 2029. Ocean Yield and NYK will each hold approximately 50% ownership interest in the vessels.
Upon delivery, each vessel will commence long-term time charters to an investment grade-rated major energy company. The transaction is estimated to add around USD 600 million to Ocean Yield’s EBITDA backlog. The charterer may exercise extension options to extend the charter duration. The charterer is also granted options that may increase the size of the investment to eight vessels.
Chief Executive Officer Andreas Røde said in a comment: «We are pleased to expand the partnership with NYK Line through this landmark transaction. Ocean Yield has over the last few years strategically entered the LNG segment, a sector that fits our investment mandate well with its infrastructure-like characteristics and long-term charters to strong counterparties.
This collaboration with NYK represents another significant step in Ocean Yield’s expansion into the LNG transportation market.
In August this year, Ocean Yield announced an agreement with a fund managed by KKR to acquire CapeOmega Gas Transportation from private equity firm Partners Group. CapeOmega and Knutsen jointly own a fleet of 10 LNG carriers, each with a capacity of 174,000 cubic meters. Seven vessels are already in operation with an average age of two years, while the remaining three are scheduled for delivery by 2026. Through this acquisition, Ocean Yield can further expand its market footprint in the LNG transportation sector.
According to its official website, Ocean Yield was established in March 2012 and listed on the Oslo Stock Exchange in July 2013. At the end of 2021, Octopus Bidco AS, indirectly wholly owned by funds managed by Kohlberg Kravis Roberts and its affiliates (KKR), acquired all shares of Ocean Yield. The company focuses on modern assets with long-term charter contracts to creditworthy counterparties and currently holds a substantial backlog of undelivered contracts, providing strong predictability for future earnings.