Seapeak cuts 10 years off 'useful lives' of group of steam-turbine LNG carriers

In its annual report, gas carrier fleetowner Seapeak described a challenging market landscape that has seen charter rates and the contracted fleet percentage drop. 

The company made downward revisions in its outlook for the oldest of its vessels – seven steam turbine-powered LNG carriers.

"Three of these vessels were placed in layup in early 2025 and the remaining four are scheduled to complete their long-term charter contracts between late-2026 and mid-2029. We have made downward revisions to the outlook for this class of older vessel based on a combination of an oversupply of this type of vessel and reduced charterer interest due to their less efficient design," Seapeak said.

With a controlling share held by ’alternative investment firm’ Stonepeak Infrastructure Partners, Seapeak positions itself as one of the world’s largest owner-operators of liquefied gas carriers. The company fleet list is made up of more than 90 vessels including 50 LNG carriers and 44 LPG, ethane and multigas carriers. 

"We have reduced our future hire rate forecast and our estimate of their useful lives from 35 years to 25 years, and increased our estimate of the likelihood that three of the vessels may be sold in 2025."

Seapeak cited LNG project delays as the cause of an oversupply of LNG carriers in the market, downgrading its forecasted revenues based on lower charter rates and periods of inactivity for some vessels in its LNG carrier fleet.

The company also said it had sold four vessels in 2024 and picked up a 2021-built 174,000-m³ dual-fuel LNG carrier, Marvel Swan, for US$213M.