Seapeak entered into shipbuilding contracts for the construction of five, 174,000-cubic meter M-type, Electronically Controlled, Gas Admission (or MEGA) propulsion LNG carrier newbuildings. The LNG carriers will be constructed by Samsung Heavy Industries Co., Ltd. for a total fully built-up cost of approximately $1.1 billion and are scheduled for delivery in 2027. Upon their deliveries, the five LNG carriers will each operate under a fixed-rate time-charter contract with an international energy major for a firm period of ten years, each of which can be extended at the option of the charterer. Seapeak expects to finance the initial newbuilding construction instalment payments by way of an equity contribution from investment funds managed by its sponsor, Stonepeak. In due course, Seapeak expects to secure long-term debt funding to finance the remaining construction costs.
