Cool Company LNG player has entered into a new time charter agreement for one of its tri-fuel diesel electric (TFDE) vessels with a new client.
The 12-month time charter is with Santos Shipping Singapore and is scheduled to commence in the first quarter of 2024.
Richard Tyrrell, chief executive of CoolCo, said: “We are delighted with this innovative agreement that provides and aligns incentives between the owner and the charterer, which is expected to enhance efficiency and minimize emissions on one of our modern TFDE vessels.
“This groundbreaking charter is the first to incorporate our LNGe upgrade and our first with Santos. It serves as a model for joint participation in the benefits of our investment in upgrading existing vessels.”
The shipowner of LNG carriers said the vessel is expected in the third quarter of 2024 to undergo its scheduled drydock, at which time the company also intends to upgrade the vessel to LNGe specifications, which include the addition of reliquefaction capability via sub-coolers, air lubrication systems, and other optimizations and upgrades.
The Santos charter will take CoolCo’s fleet utilization to 100% until the next vessel becomes available, which will not happen before the end of the second quarter.
This enables the company to extend its total operating revenue guidance to $88-89m for the first quarter of 2024 and $84-85m for the second quarter, subject to no technical off-hire.
As the New York-listed company said the anticipated lower expected revenue range in the second quarter of 2024 is primarily related to off-hire during a scheduled drydock of another vessel that is expected to be completed within the same quarter.
