Seapeak boosts LNG carrier orderbook with three-ship SHI deal

In its Q1 earnings report, the owner disclosed that it had entered into contracts with Samsung Heavy Industries (SHI) for the construction of three 174,000-m³ low-pressure, dual-fuel LNG carriers.

The estimated total fully built-up cost of the vessels stands at US$756.0M, with deliveries scheduled through the first half of 2029.

The disclosure coincided with SHI’s announcement on 18 May regarding an order from an undisclosed shipowner for three LNG carriers with a similar contract value and delivery schedule.

Seapeak said it intends to finance the newbuildings through a combination of existing liquidity, future operating cash flow, and long-term debt financing to be arranged prior to delivery.

The owner also revealed that it had secured 10-year fixed-rate charter contracts for the vessels, including a five-year extension option, with an international energy company.

As of 31 March 2026, Seapeak’s LNG segment comprised 49 vessels, including seven units under construction, as well as one LNG regasification terminal in Bahrain, in which the company holds interests ranging from 20% to 100%.

In March, the owner divested 2002-built Seapeak Jupiter for net proceeds of US$15.3M, while in January it sold 2004-built Seapeak Mars for proceeds of just over US$12M.

Seapeak posted net voyage revenue of US$116.6M in Q1 2026, compared with US$127.5M in the corresponding period last year. The decline was attributed to lower charter rates, as well as scheduled drydockings and vessel sales.

LNG newbuilding momentum

The LNG carrier newbuilding market has remained exceptionally active in recent months, with owners rushing to secure slots at major South Korean shipyards.

An SHI official told domestic media that demand for high-end LNG carriers has been rising as energy security and supply chain diversification gain increasing importance amid the ongoing Middle East crisis.

The shipbuilding giant has secured orders for 22 vessels so far this year, including 11 LNG carriers and one floating storage and regasification unit (FSRU). According to South Korean media reports, SHI secured orders for 11 LNG carriers during the whole of 2025.

George Economou-led TMS Cardiff Gas was the latest owner reported to have contracted LNG carriers at the yard.