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Seapeak Completes Evergas Acquisition in Continued Growth

Evergas acquisition
Evergas operates 10 vessels under long-term charter to Ineos (Evergas)

Published Dec 30, 2022 11:51 AM by The Maritime Executive

Seapeak completed its acquisition of Evergas, a Danish LNG shipping company, as the company continues to move forward to build its position in the transport and services for liquified natural gas. Launched earlier this year after the acquisition of the former Teekay LNG Partners by alternative investment firm Stonepeak, the Canadian-based shipping company said it intends to renew and grow its primary business of owning and operating LNG carriers, and to explore potential adjacent markets.

The acquisition of Evergas was completed on December 29 with the company becoming a subsidiary of Seapeak. Terms for the all-cash transaction, which valued Evergas at approximately $700 million, were reached in October as part of a plan agreed upon with the creditors of Jaccar Holdings, the previous owners of Evergas.

Commenting on the transaction when it was announced on October 24, Mark Kremin, Seapeak’s CEO said, “Acquiring Evergas is another big step in Seapeak’s evolution as a leading owner and operator of liquefied gas carriers. Just as we’re bullish on LNG, we’re also bullish on natural gas liquids (NGLs), especially given the even greener nature of NGLs. Already a world leader in NGLs, Ineos is now growing in LNG, and we are thrilled to be adding them as a key customer, further diversifying our portfolio.”

Seapeak adds to its fleet two Very Large Ethane Carriers and eight Multigas/LNG Carriers owned by Evergas and operated on fixed-rate time-charters to Ineos. Evergas also controls six LPG carriers under leases ending in 2024. Evergas, along with Ultragas, launched Dan-Unity CO2 as an early entrant in the developing field for the transport and storage of carbon emissions.

Based on the strong market for LNG and the transport of other gas products, Seapeak has moved to expand its position in the market. In November the company confirmed that it has placed a newbuilding order valued at approximately $1.1 billion with Samsung Heavy Industries for the construction of five, 174,000-cubic meter LNG carriers. Scheduled for delivery in 2027, the five new LNG carriers will operate under a fixed-rate time-charter contract with an international energy major for a firm period of at least ten years.

Seapeak is already one of the world’s largest independent owners and operators of LNG carriers. It holds interests in 51 LNG carriers, including the five newbuilds, 20 mid-size LPG carriers, including two further newbuilds, and six multi-gas carriers. In addition, the company owns a 30 percent interest in an LNG regasification terminal.