Recently, Norwegian ship leasing company Ocean Yield announced that it will collaborate with an investment platform under KKR to acquire CapeOmega Gas Transportation, held by private equity firm Partners Group, to further expand its presence in the LNG sector.
It is reported that CapeOmega currently co-owns an LNG carrier fleet operated by Knutsen, consisting of 10 LNG carriers with a capacity of 174,000 cubic meters each. So far, seven vessels have been put into operation, with an average age of two years, while the remaining three are expected to be delivered between 2025 and 2026. All these vessels are under long-term charter contracts with global energy giants Shell, Engie, and QatarEnergy, with an average lease term of nine years. If extension options are included, the average lease term can extend to 16 years.
Ocean Yield stated that the transaction will add approximately $120 million to its adjusted EBITDA reserves. CEO Andreas Røde commented on the deal: “We are very pleased to partner with KKR on this investment in a modern LNG carrier fleet, with all vessels secured under long-term charters with highly rated counterparties. This project will deliver attractive long-term returns for us.”
The transaction is expected to be completed in the second half of 2025. KKR, which holds Ocean Yield, is expected to inject additional capital into the company.
Ocean Yield entered the LNG market in 2024 through an agreement with Geogas LNG to acquire a stake in France LNG Shipping, which has since increased to 45%. France LNG Shipping is a joint venture between Geogas and Japan’s NYK, owning 12 LNG carriers.
Private equity firm Partners Group, the controlling shareholder of CapeOmega, acquired the company in 2019 and oversaw the sale of its gas pipeline and terminal business last year, with these assets ultimately sold to the Norwegian government.
